Stock Name: Roxy-Pacific
Company Name: ROXY-PACIFIC HOLDINGS LIMITED
Research House: OCBC
“In our opinion, results at these launches will cause the market to recalibrate its share price upward. Also, given the recent share price performance, we think the market is overly pessimistic on ROX’s prospects for accretive acquisitions.”
It adds thoughtful risk-weighted acquisitions in FY11 will likely be catalysts for price upside. “Finally, taking into account the fundamental value held in Grand Mercure Roxy Hotel and already sold-out projects, we think the downside is capped for patient investors who take on prudent exposure.”
Company Name: ROXY-PACIFIC HOLDINGS LIMITED
Research House: OCBC
OCBC initiates Roxy-Pacific (E8Z.SG) at Buy with a fair value of US$0.55 (25% discount to RNAV). The house says the specialty property and hospitality group, which primarily develops domestic residential projects, has four landbank projects (expected to launch in FY11-12) that will add at least US$20 million (25.4 million) to RNAV.
“In our opinion, results at these launches will cause the market to recalibrate its share price upward. Also, given the recent share price performance, we think the market is overly pessimistic on ROX’s prospects for accretive acquisitions.”
It adds thoughtful risk-weighted acquisitions in FY11 will likely be catalysts for price upside. “Finally, taking into account the fundamental value held in Grand Mercure Roxy Hotel and already sold-out projects, we think the downside is capped for patient investors who take on prudent exposure.”
The shares open +2.3% at $0.455.
No comments:
Post a Comment