Roxy announced 4Q13 PATMI of S$44.8m, up 92% YoY mostly due to profit contributions from WIS@Changi, which achieved TOP over the quarter, and progressive recognition at seven other property development projects. Full year FY13 PATMI cumulates to S$92.2m which increased 58% and is 18% above forecast. We judge this to be above expectations, as a result of faster-thananticipated progress recognition over 4Q13. In terms of the topline, Roxy reported 4Q13 revenues of S$169.7m, up 202% YoY again mainly due to WIS@Changi, and is within expectations. A final cash dividend of 1.297 S-cents per share is proposed. We note the group now sits on significant cash and equivalents of S$354.2m, which will provide dry powder for its planned expansion into the region. Already, over FY13, we have seen Roxy acquire assets in Malaysia and Hong Kong, and understand that management is looking into opportunities in Sydney, Melbourne, London and Phuket as well. We will speak with management regarding this set of results and, in the meantime, put our Buy rating and fair value estimate of S$0.65 under review.

Source: OCBC Research - 14 Feb 2014