UOB Kay Hian analysts Loke Peihao and Nicola Ho have maintained their “buy” call on Oxley Holdings with a lower target price of 37 cents from 48 cents previously.

The lower target price is “pegged at 30% discount to net asset value (NAV) of 52 cents/share (previously 69 cents) which has declined due to the large impairments,” say Loke and Ho.

The recommendation comes after the group registered a $296.3 million loss for 2H20 ended June on August 28.

The loss was due mainly to Covid-19 related losses from the disposal of its stake in its associated company, Galliard Group and 30 Raffles Place, as well as lower appraised values on investment properties.

The results were, however, “as expected”, according to the guidance released by Oxley on August 7.

Excluding fair value and non-recurring losses, Oxley reported a net profit of $13.1 million for FY20.

Due to the construction delays for its projects in Singapore, Ireland, and Malaysia, as well as the deferred start of new construction sites, and trimming occupancies and rates for its hotel portfolio, Loke and Ho have raised their net profit estimates for FY21-22 by 27% and 28% respectively.

As at 12.35pm, shares in Oxley were trading 0.5 cent lower, or 2.2% down, at 22 cents.