We are ceasing coverage on I-Berhad due to a reallocation of internal resources. Our last call was TRADING BUY with a TP of MYR0.32 (~50% discount to book value). To recap, it reported its strongest quarterly core numbers in five years with a 3QFY24 net profit of RM12.9m (+152.9% YoY, +123.5% QoQ) [3QFY22 saw a higher headline net profit which was mainly lifted by a one-off gain].

• Business overview. Management appears to have pivoted its current focus toward building and strengthening its investment and leisure/hospitality portfolios, which is expected to consequently have cascading effects on its development pipeline. Our previous analyst sees the merits of this shift considering that the recovery in the high-rise commercial and residential segment appears to be slower in finding its footing, though extraction of full value will still be contingent on the development portfolio.
• Ceasing coverage. Our most recent recommendation was Trading Buy with a TP of MYR0.32 (~50% discount to book value). The stock traded between RM0.22 to RM0.29 for the last 52 weeks and has fallen by about 4% YTD.

Source: PublicInvest Research - 5 Feb 2025