I-Berhad saw a notably better performance on a sequential basis with 3QFY23 net profit coming in at RM5.5m (+202.6% QoQ), though weaker compared to the similar period last year which included a one-off gain (RM15.1m) from a remeasurement of liabilities. Despite the somewhat expected stronger showing, cumulative 9MFY23 net profit of RM8.0m (-56.8% YoY) is still behind projections at 50% of full-year numbers, the discrepancy due to cost assumptions. We make adjustments to FY23/FY24/FY25 net profit estimates by -25.3%/+14.5%/-17.1% respectively to account for minor tweaks to billing assumptions, but mostly for higher costs (financing, in particular). We are encouraged by the Group’s steady fundamental improvements and sales momentum, albeit with limited impact considering only one ongoing development project at this juncture. Scope for longer-term upside is still attractive nonetheless, with ~50% of its gross development value (RM5bn) yet to be realized. I-Berhad’s long-term value is an attractive proposition, though we retain our Neutral call as we look towards further consistency in its earnings recovery. Our target price is unchanged at RM0.26 (on a significant 80% discount to RNAV and ~60% discount to book value).
Source: PublicInvest Research - 29 Nov 2023
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IBHDCreated by PublicInvest | Nov 12, 2024