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Research by PB
Neutral – Target Price RM0.26

“Steady Performance"

I-Berhad reported a sequentially better net profit of RM1.8m (+19.8% YoY, +170.1% QoQ) for 2QFY23, lifted by improved contributions from the property investment segment. Cumulative 1HFY23 net profit of RM2.5m (-14.1% YoY) remains underwhelming and missing projections at only 16% of full-year numbers, though we continue to leave forecasts unchanged for now on the expectation of stronger recognitions from both its development and investment segments in the quarters ahead. Sales momentum remains encouraging, albeit limited with only one ongoing project at this juncture. Scope for longer-term upside is still attractive nonetheless, with ~50% of its gross development value yet to be realized, timing notwithstanding. I-Berhad’s long-term value is an attractive proposition, though we retain our Neutral call as we look towards further earnings recovery, and consistency. Our target price is unchanged at RM0.26 (based on a significant 80% discount to RNAV and ~60% discount to book value).


Analyst:
Ching Weng Jin
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$KLSE-IBHD
Research by PB
Neutral – Target Price RM0.26

“Steady Performance"

I-Berhad reported a sequentially better net profit of RM1.8m (+19.8% YoY, +170.1% QoQ) for 2QFY23, lifted by improved contributions from the property investment segment. Cumulative 1HFY23 net profit of RM2.5m (-14.1% YoY) remains underwhelming and missing projections at only 16% of full-year numbers, though we continue to leave forecasts unchanged for now on the expectation of stronger recognitions from both its development and investment segments in the quarters ahead. Sales momentum remains encouraging, albeit limited with only one ongoing project at this juncture. Scope for longer-term upside is still attractive nonetheless, with ~50% of its gross development value yet to be realized, timing notwithstanding. I-Berhad’s long-term value is an attractive proposition, though we retain our Neutral call as we look towards further earnings recovery, and consistency. Our target price is unchanged at RM0.26 (based on a significant 80% discount to RNAV and ~60% discount to book value).


Analyst:
Ching Weng Jin
research@publicinvestbank.com.my