IOIPG drop from the first day it requoted on early Jan, from RM3.50 to RM2.50 in about a month plus, and then move side way until early Sept up from RM2.40 to RM2.76 on 19 Sep 2014, where the world market corrected, and now rebound back to RM2.76 testing its Sep high. If it can convincingly past through this resistance, I think it can go to the next level of RM2.90 easily, provided EPF do not continue to sell, like what the did in Jan.
IOIPG, is the strongest property stocks in the KLSE. Good DY, strong growth, great margin and strong cash flow, it deserve to be at PE of 20-25x with its growth expectation.
Ooi, although going up is good due to the Putrajaya properties news, to hit above RM3 with overall property market on the downward spiral along with uncertainty of oil price war and US global economic effect, is abit hard to swallow.....and you can bet EPF WILL SELL big time again when price hit high level again....they never disappoint in that expectation. If not how to maintain over 6% interest (so it is good for EPF and out pension saving).
If you notice the announcement, you will notice IOI has been purchasing their own share all along since the beginning, so how can price shoot up when they "start" purchasing again...
If we compare IOIPG with SPSetia, UEMSunrise & IJM Land, the P/BV, IOIPG is only 0.80x, while the rest is 1.2x to 2.4x. (mid is 1.8x). So, from the perspective of P/BV, IOIPG looks attractive and has room to move higher. Even to move up to 1.2x, IOIPG has about 50% upside.
As for PE, it is the lowest currently. at the moment, its PE is about 8.7x, vs the rest is 10x to 36x.
More importantly, it is gearing is low, growth is good, DY is about 3%, Profit margin is better than the rest (due to land was bought long time ago). I believe, this stock (although in a boring sector, i.e. Properties) is worthwhile to buy and keep for 3-5 years and expect a return of at least 15% p.a.
It is a Syariah stock, and among other properties company, I believe, it is not difficult for analyst to justified a BUY call, and the latest TP is RM3.38 (as reference). Lately it moved up from around RM2.48 to RM2.78, taking a breather at the moment. Hope it got more legs.
Whenever IOIPG move up, EPF is selling. I suppose they got a lot of IOIPG from IOICorp due to previous restructuring and it would show a profit in their portfolio.
The IOI group which went there early still has a number of projects that have yet to be marketed fully. It may face some challenges there. Relisted in January this year, IOI Properties Group Bhd has several projects there on a joint venture basis.
Although it is not a late entrant there, it had a different strategy from other Malaysian developers because it wanted to use Singapore as a platform for its overseas ventures. Also, unlike other Malaysian developers who concentrated on one project at a time, it has several on going simultaneously. Checks with several sources provide some indication of IOI Properties’ exposure. IOI Corp Bhd group public relations department did not answer questions emailed to them.
Says a source: “On Jan 16 2012, Singapore’s Housing Development Board (HDB) released a 262,828 sq ft plot in Jalan Lempeng. IOI Corp secured the site with the highest bid of S$408mil, winning against eight bids, with a second placed bid of S$360.97mil and third placed bid of S$333.78mil.
“That worked out to a cost of S$554.4 per sq ft per plot ratio (psf ppr). Analysts had estimated a break-even cost of S$854 to S$974 psf ppr.”
While there was good response in the earlier marketing of that project - The Trilinq - interest wanned. Developer Clementi Development Pte Ltd, an entity held under IOI Properties, marketed the 755-unit project between S$1,190 and S$1,850 psf. The project is under construction and is expected to be completed in 2017. It is less than 30% sold.
The group also partnered with Ho Bee Investments Limited on a 50:50 basis to develop Seascape, comprising 151 exclusive waterfront homes with seaviews to the Southern Islands and the South China Sea. Ho Bee, established in 1987, has built a portfolio of residential, commercial, industrial and mixed-use properties. It is also a key player in the Singapore property industry and has been listed on the Stock Exchange of Singapore since 1999.
That site was purchased in March 2007 for S$459mil, or at about S$1,360 psf on per plot ratio.
Completed in 2010, it is estimated about a third of the 151 units have been sold since its launch in 2011 at an average price of S$2,600 psf, a source says.
In January 2008, IOI group also purchased a site - known as The Pinnacle Collection in Sentosa Cove, where the current Cape Royale is located - for S$1.097 bil, or S$1,822 psf per plot ratio. IOI has a 65% stake and Ho Bee, 35%.
Sentosa is currently selling at between S$2,000 and S$2,200 psf, which may not be attractive for a developer like IOI Property.
A property consultant estimates that IOI Properties may be looking to sell at about S$3,000 per sq ft. Breakeven will be around S$2,500 psf. So IOI should target to sell near S$3,000 psf. However, Sentosa, at the moment, cannot command this type of price level.
“Recent transactions for similar luxury condominiums in Sentosa are trading at S$2,000 to S$2,200 psf. Cape Royale was completed last year and is currently in the market for rent only,” says the consultant.
IOI Properties also had a joint venture mixed development with City Developments Ltd on Beach Road known as South Beach, a RM4bil mixed development designed by renowned architect Sir Norman Foster which includes commercial, hotel and residential components.
Its venture with Kim Seng Heng Realty Pte Ltd to develop Cityscape @ Farrer Park, a freehold 30-storey development comprising 250 units in District 8, with close proximity to Orchard Road and the Central Business District, had a happier ending.
In a statement to Bursa in 2008 when it purchased the Cape Royale site, IOI Properties Bhd (the entity that was delisted a year later), had in mind to diversify its existing land-bank, which was then all located in Malaysia (save for the joint venture with Ho Bee for Seaview) in 2007.
In a 2008 filing, IOI Properties said they had chosen Singapore as a platform for the Group’s regional diversification as Singapore properties are presently one of the most sought after in the region.
“In particular, IOI Properties has chosen to focus on development lands within the renowned Sentosa Cove area as IOI Properties’ association with luxury landmark developments ... will enhance the company’s brand name and reputation as a luxury quality homes developer not only in Malaysia and Singapore, but also in the larger South-East Asia region, which in turn can be used to the Group’s advantage in its regional diversification plans,” the filing said.
That acqusition would also enable the property group to diversify its property development earnings - which were mainly derived from the group’s township developments in Puchong and Johor - to include a myriad of smaller-sized niche developments in choice locations, the filing said.
The group rationalised that these smaller-sized developments would also typically have a faster development timeframe or ‘turn-around cycle’.
Jonatlau, if u set up a business with cost of $100 and will get profit $10 per year. Are you willing to sell your business to me at $100? Purchase consideration has to include cost, value appreciation, future cash inflow and other opportunity cost.
No way for Ting Hsin to bought such a cheap price without involving of political connection. Ting Hsin used to be the blue eye boy or cronny of Taiwan president.
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Posted by InvestorSpecialist > 2014-10-30 12:37 | Report Abuse
I have told u all to hold it until end of this year.... Show time just begin....