Highlights

PublicInvest Research

Author: PublicInvest   |   Latest post: Mon, 25 Jan 2021, 1:29 PM

 

I-Berhad - Waiting On New Launches

Author:   |    Publish date:


The Group managed to remain in the black, though barely, with a 3QFY20 net profit of RM0.9m (-83.2% YoY, +85.7% QoQ) adding to a cumulative 9MFY20 net profit of RM2.5m (-89.5% YoY) which remains below expectations at only 20.0% of full-year estimates however. Weakness in the investment property (mall) and Leisure (theme park) segments as a result of the COVID-19 pandemic have weighed significantly, as has the lack of launches since 2018. Re-imposition of the Conditional Movement Control Order (CMCO) will impact 4QFY20 numbers, compelling us to cut FY20/FY21/FY22 estimates by 55.0%/35.2%/25.8% as we also make changes to billing assumptions. Potential earnings uplift could come from the clearing of its current inventory of completed properties totaling about RM600m. While near-term prospects are likely to remain hazy in light of the current operating challenges, we still like IBerhad’s long-term value proposition underpinned by a remaining ~60% of its gross development value in Shah Alam yet to be realized. Our unchanged target price of RM0.26 (based on an already-steep 80% discount to fullydiluted RNAV) appears to provide significant price performance upside. We retain our Neutral call nonetheless given the lack of near-term re-rating catalysts.

  • 3QFY20 earnings overview. Property development pretax profit of RM2.8m (-86.1% YoY, -50.6% QoQ) continues to underpin Group earnings, segment-wise though contributions are still from sales of completed units given the absence of new launches since 2018. The property investment segment registered a pretax loss of RM0.9m (-90.4% YoY, -81.1% QoQ), seeing brief respite during the Recovery MCO period. The leisure segment recorded a marginal RM0.1m pretax gain (-94.7% YoY, +>100% QoQ) for the same reasons. Property unbilled sales has slipped further to RM45.5m as at end-September (June: RM63.3m).
  • Business overview. We gather that the Group is gearing up to launch a residential tower block worth ~RM300m by this year-end, confident on the value proposition of its product offering. The Group will also focus on its property investment portfolio despite the longer gestational periods. With its Grade-A GBI-rated office tower completed, works continue afoot on its second convention centre and Double Tree by Hilton Hotel, both slated for completion and opening in 3QFY21.
  • Upside to earnings could come from the disposal of RM600m worth of completed properties in Shah Alam and downtown Kuala Lumpur. A quicker-than-expected recovery from the COVID-19 pandemic will also alleviate concerns over its mall, hotels and theme park exposures, reducing the drag on Group earnings.

Source: PublicInvest Research - 27 Nov 2020

Share this
Labels: IBHD

Related Stocks

Chart Stock Name Last Change Volume 
IBHD 0.22 -0.015 (6.38%) 1,337,400 

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Earn MQ Points while trading with MQ Traders Group
MQ Affiliate
Earn side income from MQ Affiliate Program
 
 

275  849  537  455 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 DNEX 0.30+0.04 
 DNEX-WD 0.06+0.015 
 BIOHLDG 0.295-0.005 
 XOX 0.08-0.01 
 PHB 0.0250.00 
 XOX-WC 0.020.00 
 LUSTER 0.195+0.01 
 VIZIONE 0.225-0.045 
 QES 0.365-0.015 
 AT 0.175-0.005 

FEATURED POSTS

1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!

TOP ARTICLES

1. Tan Sri Lim: “Being sick is being abnormal.” TOPGLOV allows only 2 paid sick leave p.a. LHL please make a police report if what you says is true! gloveharicut
2. Intco, Top Glove, Supermax - A Quick Comparison Trying to Make Sense Bursa Investments
3. Bargain hunting lifts GLOVEs share prices, say analyst, fund manager as situation remains 'volatile' gloveharicut
4. Jaks Resources - Final Update :- Jaks Hai Duong Power Plant achieved FULL COD ! DK
5. Eurocham: No mention of lockdown after Feb 4 in meeting with Miti save malaysia!
6. CIMB: FREIGHT is trading at a 60.9% & 30.8% discount to its local & regional peers gloveharicut
7. Health Ministry says govt not keen to implement MCO for a long period save malaysia!
8. Supermax record profit must prevail - Koon Yew Yin Koon Yew Yin's Blog
PARTNERS & BROKERS