I-Berhad reported another set of strong quarterly numbers, underpinned by growing ntributions from its property development segment, which remains on track to achieving its medium term goal of generating a steady-state revenue of RM500m per annum. 3QFY16 net profit grew 159.3% YoY to RM22.4m, ntributing to a mulative 9MFY16 net profit growth of 91.6% YoY to RM52.4m. Though only making up 61.6% of our full-year estimates, we deem the results broadly in line as we anticipate stronger recognition in the final quarter to bring numbers in-line. I-Berhad’s value proposition is attractive, and we ntinue to like it for its prime position in benefitting from the urbanization of the outer Klang Valley region (Klang and Shah Alam) despite on-going allenges in the property market. Pace of sales this year has matched last year’s, showing no discernible slowdowns as yet, a testament to the market segment it serves which is still seeing demand. With only about 15% of its Gross Development Value (GDV) ystallized, I-Berhad’s story is only just unfolding. Our Outperform call is reaffirmed, while we raise our target price to RM0.91 (from RM0.73 previously), as we narrow our discount to RNAV, from 60% previously to 50%, with the mpany ntinuing to deliver consistently. We see scope for upgrades in the future.

• Business Overview. The i-SOHO and i-Suite developments have been fully sold while the Liberty and Parisien Towers projects (launched in 2015) have achieved more than 80% sales, ntributing to 3QFY16 revenue of RM113.6m (+105.7% YoY, +31.0% QoQ) and cumulative 9MFY16 revenue of RM280.7m (+53.1% YoY). Unbilled sales are an encouraging RM656.5m. The recently-launched Hyde Towers development has registered 40%. While sales numbers of 8Kia Peng @ KLCC have been relatively anemic, we expect an improvement in market nditions next year to lift ntributions. Piling works on the Central i-City mall and DoubleTree by Hilton hotel continue afoot, both slated for mpletion by 2018. Both assets are integral parts of its planned RM1bn property investment portfolio, also encompassing wholly-owned r park bays (c. 10k) anticipated to yield steady streams of healthy recurring income. At this juncture however, the segment remains a work-in-progress, with rrent weakness ming as a result of the expiry of its Ijarah Agreement with Al-Rajhi Banking Corporation last year.

• Future Developments. Slated for launch in 2017 is part of the “Central Towers” development, mprising an office tower and residential suite towers above the DoubleTree by Hilton hotel which it has dubbed “Converse @ i-City” given its integration of Internet of Things functionalities. On this note, we view the mpany’s recent partnership with Huawei Technologies positively as it works toward being at the forefront of incorporating technological advancements into its product offerings, which is looking increasingly to be the next wave in property development