IOI PROPERTIES GROUP BERHAD
KLSE (MYR): IOIPG (5249)
You're accessing 15 mins delay data. Turn on live stream now to enjoy real-time data!
Last Price
2.21
Today's Change
+0.03 (1.38%)
Day's Change
2.19 - 2.23
Trading Volume
3,219,400
Analysis
Price Target
A price target is an analyst's projection of a share's future price.
Average Target Price, Price Call and Upside/Downside here are derived from Price Targets in the past 6 months.
Last Price
2.21
Avg Target Price
2.15
Upside/Downside
-0.06 (2.71%)Price Call
3
SELL
2
HOLD
26
BUY
| Date | Open Price | Target Price | Upside/Downside | Price Call | Firm | View | Action |
|---|
Discussions
4 people like this. Showing 50 of 2,958 comments
@bullrun2025, based on Hong Leong report, the sum-of-parts valuation for IOIPG is as high as RM6.00 per share. There may be upside to this SOP if its completed IOI Central Boulevard in Singapore gets revalued next year when it secures more tenants.
Hong Leong attached a 45% holding company discount and gave a target price of RM3.30 to IOIPG.
To me, such a high holding company discount should be reduced progressively when IOIPG secures more tenants for IOI Central Boulevard, especially if they manage to inject it into a new REIT in Singapore at a valuation of over S$6.0 billion.
I am looking at a 20% discount to the SOP valuation, or a fair value of RM5.00 by 2025.
IOIPG is doing net profit of RM800m a year now, and should be able to achieve a net profit of RM1.1b in 2025 when half of the tenants secured for IOI Central Boulevard starts to contribute and over RM1.37b or EPS of 25 sen by 2026.
So I attach a PER of 20x to 2026 EPS of 25 sen to get a fair value of RM5.00.
2 weeks ago
@bullrun2025, I have been accumulating more IOIPG on weakness, but I think the technical chart looks not good, support seen at RM2.25-2.31.
Decision is yours whether to add more or when to add more.
1 week ago
IOIPG is consolidating with directionless trading, as there is no news since the result announcement in May end. I have not seen foreign funds selling since they accumulated IOIPG shares in April-May 2024.
The outlook for the company is still bright, with immediate catalyst of the second batch of temporary occupancy certificate to be received for its Singapore IOI Central Boulevard in next few weeks.
1 week ago
@dragon328, ioipg down again following the ceo announcement yesterday, any comment on his latest announcement
1 week ago
@bullrun2025, IOIPG CEO proposed for IOIPG to acquire the SHenton 101 project in Singapore from his private vehicle. The CEO Lee Yeow Seng had earlier acquired the project site in an open tender last year using his own private vehicle due to the tight bidding schedule, and also due to the large capital outlay required (so as not to burden IOIPG balance sheet last year).
To me, this is a very good move by the CEO to have bidded the project first then only propose to inject it into IOIPG. Whether this will be a good project or not, it does not matter for now. IOIPG shareholders will have sufficient time now to deliberate on the deal which will require shareholders' approval at an EGM to be held. The Lee family will abstain from voting as it is a related party transaction. I think this is very transparent and fair to minority shareholders of IOIPG. We can vote to reject the deal if the independent advisor assesses that this project will not be feasible. I am sure the next major shareholders EPF (6.7% stakes) and ASB (6.4% stakes) will vote against it if it is not a good project. Our interests are protected.
Now for the project itself, I think it is potentially a good commercial asset to be held by IOIPG in the long run. The main reason for the CEO to inject this project into IOIPG is to avoid competition of this project with IOIPG's nearby projects (IOI Central Boulevard and Marina View Residences) in the CBD. With the Shenton 101 project injected into IOIPG, the company will then be able to control the timing of launches and pricing for an orderly roll out of commercial properties there.
It is not known at this stage the GDV of this Shenton 101 project. I can do a rough estimate based on its Marina View Residences project which IOIPG acquired the land for SGD1.5 billion in 2021. This MVR project has a revised GDV of SGD3.5 billion. Now in the current proposal, IOIPG will be effectively buying over SHenton 101 project at a total land cost of SGD1.01 billion so I estimate that this Shenton 101 project may have a GDV of SGD2.3 billion.
1 week ago
The Board of Directors (“Board”) of IOI Properties Group Berhad (“IOIPG” or “Company”) has on 25 June 2024 received a letter of proposal dated 25 June 2024 (“Proposal Letter”) from Mr Lee Yeow Seng, who is the Group Chief Executive Officer and a substantial shareholder of IOIPG (“LYS”), informing the Board of a proposal for IOIPG to acquire Shenton 101 Pte Ltd (“Shenton 101”) for the redevelopment of “Shenton House”, a commercial property located at 3 Shenton Way, 068805 Singapore (“Shenton House”). Shenton 101, a company incorporated in Singapore of which the sole shareholder is LYS, has successfully tendered for the collective sale and purchase of Shenton House at a consideration of SGD538 million. Shenton 101 is therefore to carry out the redevelopment of Shenton House, the redevelopment works for which are scheduled to commence at the end of 2025.”
6 days ago
high trading volume today at 24m @ 4:15pm...... last time this volume was in 13 May, where the price increased from 2.35 to 2.53..... not sure if public is viewing this announcement by CEO as positive or not.... nevertheless its NEWS in otherwise dull affair :-)
6 days ago
Today selling was apparently done by short term funds and traders who seemed disappointed with the proposal announced by IOIPG CEO, they could have expected something else better.
To me this proposal is good as it shows transparency and good vision by the CEO and management. Shenton 101 is located right in Singapore CBD where high grade commercial office and residences are still high in demand.
Some analysts are concerned with the huge capital outlay of the project which will result in higher gearing for IOIPG after acquiring this project. One estimates that IOIPG would rise from 0.75x to 0.88x after paying effectively SGD1.0 billion for the project.
I agree with Hong Leong analyst's view that IOIPG gearing will come down quickly once IOI Central Boulevard is completed and IOIPG can recognise some revaluation gain of this prime asset. The cost of holding for IOI Central Boulevard is about SGD3.38 billion and the market value will be around SGD6.0 billion, so there is potentially revaluation gain of as much as SGD2.62 billion which will increase shareholders' fund by the same amount and reduce gearing to 0.61x.
Furthermore, IOIPG's operating cashflows are very strong at over RM800 million a year based on existing assets and will increase to RM1.5 billion a year once IOI Central Boulevard is 90% tenanted out.
Not to forget is that IOIPG still has over 4,300 acres of land in Kulai Johor, part of which can be monetised to reduce gearing. Disposing just 1,000 acres of land there at the minimum recent transaction price of RM25 psf will bring in over RM1.0 billion cash to IOIPG, at the most recent transaction price of RM125-138 psf will bring in cash of over RM5.0 billion to IOIPG, and gearing will drop below 0.5x.
6 days ago
i read the full announcement and its so lame. lee states the main reason for the proposal being conflict of interest, well why didnt he think of the conflict when he first made the bid for shenton? he knew he was the ceo and he knew there would be conflict of interest and yet he made the bid and entered into the deal. therefore why cry wolf now? instead, he shd have simply stated that the he made the bid as timeline was short and if it went thru ioipgthe process would take too long and the bid could not eb made and therefore he took it unto himdelf to make the bid on behalf and now offers the deal to ioipg at cost and for full evaluation. if ioipg thinks its profitable then it can take it otherwise it can drop it, simple as that. now since he said the reason being conflict of interest, how if ioipg drops the deal? he will be left with the deal as well as the conflict of interest. what a lame approach, his lawyers shd be sacked if you ask me. also u thinm singapore will simply dit idle and see the deal being juggled by the winning bidder, perhaps sing will recind the offer then? junior lee is so unlike senior lee, if dad was around he would have taken the bull by its horn....adoih, just my 2 cents worth..... what u guys think? dragon328?
6 days ago
@raymondroy, I think what Lee YS did is good and transparent. He could have used IOIPG to bid for the Shenton 101 project last year in the first place, but according to the statement, the bidding schedule was tight and it was quicker to use his private vehicle to bid it first. Had it used IOIPG to bid, it would have to go through an EGM first to seek shareholders' approval as the project is big, and in that case the bid would have gone through the board and shareholders' approval as Lee family controlled 65% of IOIPG. Then it would have been worse for IOIPG minority shareholders then as the timeline was tight for any shareholders to assess the feasibility of the project and vote for the bid, and Lee was holding majority of the voting rights and would have bulldozed through it.
If the bid did not require shareholders' approval, then IOIPG's management would have gone ahead to bid for it, and should IOIPG win the bid directly, then minority shareholders again would blame the management for not getting their prior approval to participate in the bid. How would you think then? Which way is better?
To me, obviously Lee has chosen the right way which is fair for IOIPG shareholders including us. He got the project first using own money, now only he proposes to inject it into IOIPG at costs, and we now have the choice to take it or leave it. We have 4 months time to evaluate the feasibility of the project and to appoint an independent advisor to to help evaluate it. If the project turns out to be not feasible for IOIPG in the long run, then we simply reject it. Important thing to note is that it is just a proposal, not a forced deal by the CEO. The CEO and Lee family will abstain from voting on this proposal.
Now come back to the Shenton 101 project itself, I am not too familiar with the prime commercial CBD area in Singapore, but from the map this Shenton House is within walking distance from major other commercial landmarks and tourists like Marina Bay and about 350m away from IOI Central Boulevard, so itself will be a prime commercial project that can fetch good rental rates. If based on IOIPG's other project in the vicinity, Marina View Residences, the potential GDV for Shenton 101 may be over SGD2.3 billion. I have seen one analyst estimating the total project costs to be about SGD1.5 billion (land costs of SGD1.0b + construction costs SGD500m), so potential gross development profits could be around SGD800 million.
If Shenton 101 is redeveloped into another Grade A prime office tower like IOI Central Boulevard, it may be able to fetch similar rental rates of SGD11.42 psf (average Grade A office rental rate in Q1 2024). Shenton 101 can have a plot ratio of 14 times when redeveloped so gross floor area may top 500,000 sf. Assuming net floor area to be rented out is 80% or 400,000sf, then potential rental income may reach SGD55 million a year. At the current market valuation of 3%-4% rental yield, this Shenton Project could be worth SGD1.4b to SGD1.8 billion.
6 days ago
For your other concern, If IOIPG minority shareholders decide to reject the proposal, then CEO Lee will have to take it back. Then he will face the dilemma of having the conflicts of interests when he develops and markets the project in competition with IOIPG's IOI Central Boulevard and Marina View Residences, or he may choose to sell the project to another party. That's his issue to deal with then.
To us as minority shareholders of IOIPG, after we reject the deal, then our own projects there will face competition with this Shenton 101 whether it is developed under Lee's private vehicle or by another party. Singapore government's intention is clear, it is to redevelop this piece of land and earn the land premium, it wouldn't care whether the developer is Lee or IOIPG or another Singaporean developer, as long as the developer can pay the land + premium.
In short, to IOIPG, it is negative bias if we reject the deal, and it will be positive bias if we take on the project and market it together with IOI Central Boulevard and Marina View Residences in synergy and not in competition.
Why this is important, as the development plan for this Shenton 101 is not finalised yet, it can be developed into another Grade A prime office like IOI Central Boulevard or a high-end serviced apartment or condo like Marina View Residences. If this project is under IOIPG, then we can see if our IOI Central Boulevard office rental is taken up well in coming months, then we may decide to develop Shenton 101 into another Grade A office and roll it out after IOI Central Boulevard achieves over 90% rental rate next year or so. If Marina View Residences are well received when it is launched end of this year, then we may decide to develop Shenton 101 into another high end condos which will be launched earliest in 2027 (as construction may start only in end of 2025).
Then we can avoid competition and can reap the maximum benefits of launching the right products into the CBD area.
5 days ago
With or without this Shenton 101 project, IOIPG is grossly undervalued. IOIPG is making net profit of RM800 million a year, with IOI Central Boulevard already 50% tenanted out, the expected rental income from 50% tenancy may be over SGD100m a year, which will push IOIPG net profit to over RM1.1 billion a year or EPS of 20 sen.
At current share price of RM2.16, IOIPG is trading at prospective PER of just 10.8x. The selldown in past 10 days due to this Shenton 101 proposal is unjustified as it is merely a proposal which can be easily shot down by minority shareholders.
When IOI Central Boulevard is progressively tenanted out to over 90% (the management is already negotiating for another 20% tenancy now), then gross rental income may top SGD200 million a year, and IOIPG net profit may touch RM1.5 billion, especially when Putrajaya Mariotte Hotel and Palm Garden Hotel are already up and running after refurbishment to help pushing the hospitality division of IOIPG to new heights.
I forecast that EPS for IOIPG may reach 30 sen by 2026 and higher when Marina View Residences starts to contribute in 2027. Based on an average PER of 20x for large property counters (Eco World at 20x, Mah Sing at 17x, SP Setia at 28x), IOIPG will be worth RM6.00 by 2026.
Hence, the selldown in these few days has presented a good opportunity for investors to buy low into this property giant.
5 days ago
thanks for the explanation @dragon328 ..... although I feel the proposal could have been done smarter, related party transactions are always frowned upon and malaysian companies shd take heed and learn from our western counterparts.... many use listed vehicles for their personal play, and worse when there is no tack at all in disclosing the news ...LOL
5 days ago
If you don't like the proposal, just go to the EGM to vote against it.
I am sure EPF and ASB will make the right decision to protect their own interests (combined 13% stakes) in IOIPG.
5 days ago
We minority shareholders hold a combined 22% stakes in IOIPG, higher than the combined 13% stakes held by EPF and ASB. With Lee family abstained in the voting, we can make a difference in accepting or rejecting the proposal.
5 days ago
I agree that the proposal should have been made in a better way with more advanced information communicated to the investment public, so that such selling on IOIPG shares in past 10 days could have been avoided.
Minority shareholders who have bought in the shares of IOIPG above RM2.30-2.50 earlier are suffering now due to a poorly communicated proposal news.
On the other hand, the 14% drop in share price from RM2.50 to now RM2.16 in past 10 days is obviously overdone, as it is just a proposal, not a deal. And especially minority shareholders can have a chance to reject the proposal, so there is no damage done to IOIPG company fundamentals.
Statistics shows that foreign funds bought in a total of RM16 million worth of IOIPG shares yesterday alone, and EPF has been buying millions more in past few days as Bursa announcements show.
Hence fund managers tend to evaluate the news in a more objective way, and I think it was mainly retailers who have sold their tickets cheap to these funds on obvious over-reacting.
Just think about it, there is no deal done yet, it is just a proposal that we have every right to reject if we find out that it is not a good project.
If we have bought in earlier at RM2.30 or higher, won't it be much cheaper now to add? as there is no change in fundamentals and outlook but the share price has got 14% cheaper.
5 days ago
While I hope that retailers will continue dumping their shares to push the share price lower towards RM2.00 or below for me to collect more cheap tickets, but it looks like the downside is limited now as foreign funds and EPF have already come in to scoop up retailers' tickets.
5 days ago
there seem to be some support at 2.16 .... looks like good time to add, but then again yesterday was super high volume, and contra selling will take place +3 days
5 days ago
They have not announced EGM yet to decide on the proposal, but they will first appoint an independent advisor to evaluate the proposal. I guess we will have to wait for the independent advisor report to be out then we can evaluate it and make a more informed decision before we vote in an EGM.
The proposal is valid for 4 months until mid October, guess the EGM shall be held in September 2024 thereabout.
5 days ago
Many thanks! Personally I value Shenton deal with high regards, the synergy the vision
5 days ago
@Kikilala3188, yes same here, I see it as positive bias for IOIPG to take over the Shenton 101 project
5 days ago
It may not be a major catalyst, not as big as IOI Central Boulevard or Marina View Residences, but at least it strengthens IOIPG's presence in Singapore CBD area.
And it will add more value to the upcoming commercial REIT to be set up by IOIPG in Singapore to house IOI Central Boulevard as well as this Shenton 101 (which will be about 1/3 of IOI Central Boulevard's 1.29 million sf NLA).
5 days ago
Series of acquisition and development spell out clear ambition by the group: REIT = cash generating machine with rental being the main contributor
4 days ago
price gaining some traction today at 2.22 @ 2:52pm ..... dragon328 I believe this is what you were looking out for :-) after 10 continous days of drop finally a support is seen :-) with hope in the horizon in the form of shenton.... and possible REIT conversion later on
4 days ago
I am not really good at technical charts but from the shrinking volume yesterday and share price having tested 2.13-2.15 level three times this week, I feel like it has hit a temporary bottom. This also means my buy orders at RM2.11-2.12 will likely never be done :(
4 days ago
We are mindful of the size of the investment outlay for IOIPG. The initial investment of SGD1,104m (RM3.55b) alone will increase its net debt and gearing of RM16.7b and 0.73x as at end-Mar 2024 to RM20.3b and 0.89x. Nonetheless, we take comfort in Shenton House’s strategic location and Singapore’s stature as one of the top financial centres in the world.
1 day ago
@dragon328, ioipg looks bearish after this latest announcement. Any buy stategy
1 day ago
@bullrun2025, IOIPG chart looks bearish, no doubt. The recent selldown is apparently caused by this RPT proposal, as I have not seen any other news on IOIPG.
How low the share price can go is anybody's guess, I have no clue but see support at RM2.10-2.00. One can slowly accumulate the shares on weakness like now towards the support levels. You can never buy the lowest, but mush have the holding power if the share price dips further after your purchase.
Short term share price movements are hard to explain and to predict, but at the end of the day, fundamentals prevail.
I remember last June when Singapore EMA announced to implement Temporary Price Cap (TPC) on the electricity wholesale market from 1st July 2023, the market took it very negatively and expected this TPC to impact PowerSeraya's earnings severely. As a result, YTL Power share price suffered a knee-jerk reaction of sell down immediately. The share price took a big hit from RM1.30 then to a low of RM1.15, and I kept calling a buy on weakness, as I knew that this TPC would not have a big impact on PowerSeraya's earnings, the bulk of which are secured through long term retails contracts. YTL Power share price recouped all lost ground within a week and scaled new highs within a month.
Now for IOIPG, this Shenton 101 RPT is just a proposal, not a deal. It will not have any impact on IOIPG fundamentals if minority shareholders reject the proposal, therefore I am puzzled with the selldown. This indicated to me that there might have been deliberate market actions to depress the share price for certain agenda unknown to me, or might have been some smaller funds selling as they might thought other funds / EPF and minority shareholders would approve the proposal.
While I do not know how funds and minority shareholders will vote on this proposal, but personally I see positive bias for IOIPG to take over this SHenton 101 project for synergies to be derived from cross selling and lower competition.
1 day ago
IOIPG is one of the top Buy stocks in TA and AmResearch's big cap picks for 2H 2024. More and more local research houses are calling a buy on IOIPG, when foreign funds are still busy accumulating more shares in IOIPG.
YTD, foreign funds have net bought a total of almost RM300 million of IOIPG shares, while EPF has been buying in millions of shares almost everyday in past few weeks.
23 hours ago
♦️ *Any other potential land that can be sold to data center player for quick monetisation?.*
So far, no land is suitable to be sold to data center player.
15 hours ago
@sg999, IOIPG has plenty of land available for sale to any potential data centre developers in Johor. IOIPG bought a total of 5,680 acres of land in Kulai many years ago and have since developed some 2,200 acres of it into a mature township over the last 20 years. It still has some 3,480 acres of land in Kulai available for future development.
I think at least 1,480 acres of this is available for quick monetisation if opportunities arise. If you remember, IOIPG sold some 450 acres of such land cheap to Eco World last year before the data centre boom in Johor, and Eco World managed to re-sell some 110 acres of it to a data centre developer at RM75 psf. That shows that the Kulai land owned by IOIPG is worth at least RM75 psf.
FYI, Sunway just announced to sell 64 acres of land in JB for RM130 psf to a Singapore-based data centre operator. Crescendo has sold 3 parcels of land in Pulai at RM125-138 psf.
2 hours ago
Post a Comment
Featured Posts
MQ Trading Signals
Time
Signal
Duration
Type
2024-07-03 10:00:00
EMA 5
Hourly
BUY
2024-07-03 09:00:00
ADX
Hourly
BUY
2024-07-03 09:00:00
EMA 5
30 Mins
BUY
2024-07-03 09:00:00
TURTLE SYSTEM 20
30 Mins
BUY
Apps
Top Articles
1
How to become a resilient trader
2
TA Sector Research
3
4
5
7
AmInvest Research Reports
8
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
bullrun2025
Dragon, then what is the fair price for ioipg???
2 weeks ago