IOI Properties retains Neutral, target price lowered to RM1.79
(Calls by analysts tracked by Bloomberg: 5 Buy, 2 Hold, 1 Sell; Consensus target price: RM2.47)
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New Straits Times
05-06-2025
- New Straits Times
IOI Properties' Singapore expansion to drive 9pct earnings uplift in FY26
KUALA LUMPUR: IOI Properties Group Bhd's plan to acquire the remaining 50.1 per cent stake in Singapore-based Scottsdale Properties Pte Ltd is expected to deliver a meaningful earnings uplift and enhance its strategic presence in the city-state. Hong Leong Investment Bank Bhd (HLIB) said the acquisition could contribute an earnings uplift of RM89.5 million or 1.63 sen in earnings per share (EPS) in calendar year 2026 (CY26), representing nearly nine per cent of projected financial year 2026 (FY26) earnings. "Post-acquisition, net gearing is estimated to rise to 0.93 times from 0.70 times as at June 30, 2024," it said in a note. Yesterday, IOI Properties announced it is acquiring the remaining stake in South Beach development for S$834 million (RM2.75 billion), taking full ownership of the Grade A office, JW Marriott Hotel, and its retail component. HLIB said the group's higher gearing remains manageable given its stable recurring income, strong assets, and upcoming real estate investment trust (REIT) listing plan. The firm also noted that the acquisition involves operational, cash-generating assets unlike previous deals such as IOI Central Boulevard and Marina View, which locked in capital for several years before yielding returns. "As such, we expect the steady income streams from the South Beach development to sufficiently cover interest obligations, supporting a healthier debt servicing profile," it said. HLIB has maintained its "Buy" rating for the group with an unchanged target price of RM4.05. The firm said IOI Properties offers investors a rare diversified market exposure, anchored by its strategic presence in Singapore's resilient and high-value real estate market. It also holds a deep-rooted position in Malaysia's property sector, which is undergoing a structural uplift driven by economic reforms, infrastructure push, and industrial expansion. "This diversified footprint provides both defensive stability and growth opportunity, reinforcing IOI Properties' position as a compelling proxy for long-term property sector upside across the region," it added.
Malaysian Reserve
05-06-2025
- Malaysian Reserve
IOI Properties retains Neutral, target price lowered to RM1.79
IOI Properties Group Bhd announced the acquisition of remaining 50.1% stake in South Beach project in Singapore from its joint venture partner for S$834.22m or equivalent to RM2.75b. We are neutral on the acquisition as it is expected to increase net gearing of IOI Properties Group to 0.87x from current elevated net gearing of 0.75x. We make no changes to our earnings forecast but revise our target price lower to RM1.79 from RM1.84 after widening revaluation net asset value discount in view of the elevated net gearing. Maintain Neutral on IOI Properties due to limited catalyst in the near-term. – MIDF Amanah Investment Bank Bhd (June 5, 2025) (Calls by analysts tracked by Bloomberg: 5 Buy, 2 Hold, 1 Sell; Consensus target price: RM2.47)
The Star
05-06-2025
- The Star
Trading ideas: IOI Properties, Affin, Nestcon, Grean Ocean, I-Bhd, Sime Property, Bintai Kinden, TMK, HE
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. IOI Properties Group Bhd is acquiring the remaining 50.1% stake in Singapore's South Beach development from City Developments Ltd for RM2.75bn (SGD834.2mn), gaining full ownership of the mixed-use asset. Affin Bank Bhd has raised USD300mn (RM1.3bn) through its first US dollar bond issuance under a USD2bn Euro Medium Term Note programme. The notes carry a 5.112% annual fixed rate and will be listed on the Singapore Exchange. Construction company Nestcon Bhd said its diversification into property development will take longer and plans will be revised. Green Ocean Corp Bhd plans to reallocate RM20.2mn from its rights issue funds, originally intended for its glove business, to support the expansion of its food and beverage segment, citing ongoing challenges in the glove industry such as falling prices and low utilisation. I-Bhd has committed RM10.0mn to implement artificial intelligence and robotics infrastructure across its income-generating assets in i-City, with full rollout targeted by 2028. Sime Darby Property Bhd has raised the minimum living wage for employees in the B40 income group by 80%, from RM1,500 to RM2,700 a month, as part of its commitment to employee well-being and inclusive growth. Bintai Kinden Corporation Bhd has seen its independent non-executive chairman, Datuk Ng Choon Koon, become a substantial shareholder again after acquiring shares on the open market and raising his stake to 6.62%. TMK Chemical Bhd announced that a major supplier will terminate its alkali distribution agreement in Vietnam effective Dec 31, 2025. HE Group Bhd ,which made its debut on Bursa's ACE Market just over a year ago, is planning to transfer to the Main Market.
