[%yFjo%]
Research by HLIB
BUY – TP RM3.60

"Positive developments despite earnings miss”

IOIPG reported strong headline FY24 profit of RM2.06bn boosted by the revaluation gain of its investment property assets. Nonetheless, its FY24 core PATAMI of RM638.1m (-0.4% YoY) was below expectations due to weaker JV performance and lower China sales. The group reported solid sales, exceeding its target, and saw a decline in net gearing. Separately, IOIPG entered into a management agreement for Shenton House, securing management fees and a first right of refusal for future acquisition – addressing potential conflict of interest and reducing financial risk. We cut our FY24/25 forecasts by -5%/-1.4% as we impute lower contribution from IOICB. Maintain our conviction BUY call with an unchanged TP of RM3.60 based on 40% discount to our estimated RNAV of RM6.00  

 Analyst:
Tan Kai Shuen, CFA
[%MnQh%]

$KLSE-IOIPG
Research by HLIB
BUY – TP RM3.60

"Positive developments despite earnings miss”

IOIPG reported strong headline FY24 profit of RM2.06bn boosted by the revaluation gain of its investment property assets. Nonetheless, its FY24 core PATAMI of RM638.1m (-0.4% YoY) was below expectations due to weaker JV performance and lower China sales. The group reported solid sales, exceeding its target, and saw a decline in net gearing. Separately, IOIPG entered into a management agreement for Shenton House, securing management fees and a first right of refusal for future acquisition – addressing potential conflict of interest and reducing financial risk. We cut our FY24/25 forecasts by -5%/-1.4% as we impute lower contribution from IOICB. Maintain our conviction BUY call with an unchanged TP of RM3.60 based on 40% discount to our estimated RNAV of RM6.00  

 Analyst:
Tan Kai Shuen, CFA
kstan@hlib.hongleong.com.my

$IOIPG / 5249 (IOI PROPERTIES GROUP BERHAD)