stockpicker888

The Board of Directors of IOI Properties Group Berhad (the "Company") wishes to announce that IOI Mall Damansara Sdn Bhd (“IOI Mall Damansara”), a wholly-owned subsidiary of the Company, has entered into a Sale and Purchase Agreement with Tropicana Indah Sdn Bhd on 23 July 2024, for the acquisition of Tropicana Gardens Mall in Tropicana Indah, Petaling Jaya, Selangor (the "Mall") at a total cash consideration of RM680 million.

3 days ago

dragon328

@stockpicker888, this latest acquisition by IOIPG of Tropicana Gardens Mall seems to be a good deal, purely looking at the acquisition price at a big discount to the book value of RM944 million. Though the mall is only 77% occupied, but it has over 1.0 million sf NLA which is big. And the vacancy of 23% provides upside to future rental income.

The announcement does not contain any info on the existing rental income of the mall, so I am not able to calculate the rental yield.

Do you have any info on that? What do you think of the latest acquisition?

3 days ago

speakup

what i think ? LIMIT DOWN!

3 days ago

Zazzyy

dragon’s passionate & detailed analysis beats many IBs report. Credit has to be given for his efforts to share . whether share price goes up is secondary . instead we have people here who know only to criticise without basis . don’t let them affect your passion. good luck

3 days ago

alexisinvestor

@dragon328, not forgetting Sunway only owns 84% stake in Sunway Healthcare after divesting 16% stake to GIC in 2021. In comparison, IOIPG fully owns 100% stake in IOICB

Which makes the valuation gap between IOIPG and Sunway even bigger


Foreign funds have been buying big on Sunway, mainly driven by the prospect of it setting up a healthcare REIT to house the various Sunway hospitals. The listing timing is projected to be in 2027 and the potential valuation may be stretched to RM20 billion at a EV/EBITDA multiple of 20x. Sunway share price has more than doubled up YTD to a market cap of RM24.5 billion today.

In comparison, IOIPG potential injection of IOI Central Boulevard into a REIT in Singapore may be even sooner than Sunway's setting up of the healthcare REIT. IOICB may be injected into a REIT as soon as in 2025 once occupancy reaches 90% or higher. Potential valuation may be as high as SGD6.0 billion or RM21 billion, even higher than Sunway's potential valuation of its healthcare REIT.

IOIPG has a market cap of RM11.9 billion only, trading at only half of the potential valuation of IOI Central Boulevard.

3 days ago

stockpicker888

@dragon328 my first impression is similar to yours, looking IOIPG’s aggressiveness in its hotels/malls portfolio expansion, it shows that management has strong will to strengthen the company’s source of recurring income. IOI REITS establishment could even be on the horizon in a long term perspective. Of course the underlying concern would be the additional debt which could increase the gearing ratio, and deters stock price.

3 days ago

dragon328

@stockpicker888, yes the immediate reaction from most investors to IOIPG's latest acquisition should be the escalating gearing ratio which will increase from currently 0.73x to 0.92x after these 2 acquisitions from Tropicana and the acquisition of SHenton House project from the CEO at S$1.0b.

The share price should see muted reactions today as the acquisition of the Tropicana Gardens Mall was well expected, and is part of the package deal with Tropicana after the acquisition of W Hotel, KL and Courtyard by Marriotte, Penang in Dec 2023 and early 2024.

2 days ago

dragon328

HL analyst is more optimistic of the deal. Current rental rates at Tropicana Gardens Mall is around RM5.00 psf, so annual rental income will be 1.05m sf x 77% x RM5.00 psf x 12mths = RM48.5 million. Hence the acquisition price of RM680m will provide a gross yield of 7.1%.

However, Tropicana Gardens Mall is currently loss making. The analyst is optimistic that IOIPG will be able to improve the mall footfalls and potentially double up the gross rentals in 5-6 years, just like what IOIPG achieved from its IOI City Mall (which was loss making in 2014 when opened but now is the largest shopping mall in Malaysia with average rental rate of over RM10 psf).

2 days ago

paktua73

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2 days ago

paktua73

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2 days ago

paktua73

opps..just updated only..

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2 days ago

dragon328

Dear paktua73, thank you so much for your effort to promote my blog and to get so many new followers, but I see that many of my posts now in YTL and YTL Power forum get to stay and have not been removed since yesterday, and I don't aim to be having the most followers in i3.

But I will keep fighting the naysayers who got my posts removed, by continuously posting impartial comments on the stocks I cover. Only if my posts get removed again, then fellow investors may pm me for any info you require.

Thank you

2 days ago

dragon328

As expected, IOIPG share is suffering another round of selling today after the latest acquisition news. Though the daily data does not show that IOIPG was in the top 10 counters of foreign funds selling everyday, as it only shows foreign selling or buying above RM8m or something, but I suspect foreign funds have been selling IOIPG non-stop on daily basis, perhaps at 2.0 million to 3.0 million shares (sale volume of RM4.3m to RM6.5m) a day.

I guess funds and investors are getting frustrated with the latest developments around the company and lack of actions from IOIPG management to prevent the share price crash from RM2.50 level.

2 days ago

bullrun2025

@dragon328, any stop loss strategy here

2 days ago

dragon328

@bullrun2025, I am not sure when to stop loss as I am not good at technical charts. But normally as a rule of thumbs, I cut loss on a stock if the share price falls by 15% to 20% lower than my purchase price, or fundamentally the company's prospects have deteriorated.

My average cost of purchase is around RM2.23 after averaging down to RM2.11 today. As the share price is testing a key support level of RM2.10, I will stop buying and wait to adapt my own cut loss strategy. As it stands now, I look to cut partially when share price drops below RM2.00 and then cut off all holdings if share price drops below RM1.80.

That's for me. You need to assess your own risk appetite.

2 days ago

dragon328

Technically if the share price drops below RM1.80, it will have given up all gains YTD. It may paint a head-and-shoulder pattern with the right shoulder at around RM1.80. Below this, it will crash further down towards RM1.00 level, I guess. Don't take my words here, as I said I am not expert in charting.

FUndamentally, if the share price can drop below RM1.80, it implies that serious investors will have exited the stock and most think the company's prospects are turning negative, something really bad may be going to happen soon.

This is entirely possible, as looking at the share price movements in past few weeks and the inaction of IOIPG management, I think the IOIPG major shareholders and management do not care much about the company share price. They just do whatever they like and whatever they want for themselves and for the company, without taking care of minority shareholders' interests. They just want to make sure the company is doing okay with the new projects they propose, have enough cashflows to acquire the various assets announced recently, and have enough money to pay their fat salary or directors' fees. They need not worry about minority shareholders' interests, as long as they can carry on with their day-to-day business and take home good salary at the end of each month.

2 days ago

dragon328

I start to wonder if IOIPG management's attitude is indeed like what I described above, why not just take the company private? Then they would be able to play any game they want, without any minority shareholders' objection.

2 days ago

paktua73

morning too all ioipg readers..

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2 days ago

stockpicker888

EMPLOYEES PROVIDENT FUND BOARD (a substantial shareholder) acquired 3,000,000 shares on 19-Jul-2024.

1 day ago

dragon328

It is good to see EPF continue buying IOIPG shares after a short break.

But who is selling big these few days? Can anyone have any clue why the sell off is so heavy pressing the share price to multi-month low?

1 day ago

raymondroy

@dragon328 ..... your wish may actually come true, if management which is also major shareholder wants to take ioipg private, they will have little consideration to share price stability, as the lower it goes its works in their favour when offering MTO price... anyway market sentiment is bad and effecting all counters not only ioipg, so not fair to evaluate the price at this point, i thot there was good support at 2.18-2.20

1 day ago

dragon328

@raymondroy, thanks for the comforting words.

But just feeling bad for fellow investors who bought in after my Buy call and the share price started sliding down non-stop.

Myself is ok to withstand such short term price downtrend as I intend to hold it for years, but some fellow investors may have cut loss if their investment horizon is short term

1 day ago

dragon328

Looks like syndicates are quite determined to press down the share price to RM2.00 then RM1.80 for whatever reason. Just need to hold on through the rough ride, I believe we shall see clear sky ahead.

1 day ago

dragon328

Anyway it is not my wish for IOIPG major shareholders to take IOIPG private, just to make it clear. I want to invest in this company and ride on its growth for many years to come.

While it made sense for them to take it private, but I do not think they would do it.

The selldown in recent days could be done by certain syndicates or parties trying to press down the share price, and frustrate minority shareholders who will then go and vote down the Shenton House proposal in the EGM later.

It is just my wild guess, true or not, only time will tell. But it does not bother me as I will just hold on and ride through these few months of volatility. I believe at the end of the day, common sense prevails and fundamentals speak louder than any short term plays. IOIPG will see its bright day eventually as strong earnings growth kicks in.

1 day ago

newbie9893

Looks like support at 2.00 is breaking soon...sell & run

1 day ago

invest8912

The market gave it a middle finger regarding RPT. Ask yourself a simple question, if you get a project that can generate huge profit, would you share it with all the ikan bilis ?

1 day ago

dragon328

Yes that is the general sentiment towards RPT. IOIPG management should take note of such negative sentiment from the investment public and do the necessary to convince minority shareholders of the merits of the proposal.

Anyway disgruntled shareholders can just go and debate with IOIPG management at the EGM on the merits or disadvantages, and vote down the proposal if still not convinced by the management explanation.

1 day ago

dragon328

I think the sentiment will be different and positive if the share price jumps above RM2.50 by the time the EGM is held. Until then, we just hold on.

1 day ago

dragon328

IOIPG is on cheap sale now, with share price almost 10% cheaper than the price when I first recommended it.

With Shenton House parked under IOIPG and with Marina View Residences and IOICB start contributing earnings from 2025, IOIPG is on track to triple its net profit from currently RM800m in FY2024 to over RM2.4 billion by FY2026.

IOIPG is trading at prospective PER of just 4.6x FY2026 earnings and 4.2x FY2027 earnings. Buy!

1 day ago

dragon328

Big sell down last minute, should be by foreign funds. Will know it tomorrow.

1 day ago

troy88

wow, what happened to this stock? IBs gave such high TP but drop like no tomorrow. GG

1 day ago

raymondroy

@dragon328 ..... you are not at any fault at any point, you merely expressed your honest opinion using existing data and analytics.... its just unfortunate that the RPT came up and if you recall i also wrote a "scathing" review on the whole RPT act (which was a little extreme on my side as well), and now they have bought a loss making mall (tropicana) with very little commentary on the purpose, reason and how they plan to turn it around ...... LOL so how ... hang in there, cheers buddy

1 day ago

sg999

The selling is done by FF fund, you may refer to bursa report.
Support is broken on today, next support at 1.7

1 day ago

dragon328

@sg999, I cannot find the relevant report on IOIPG trading details in the link you provided above. Can you please provide a more specific link or extract out the relevant data? Thanks

1 day ago

dragon328

Otherwise, I will have to wait till tomorrow morning to see the summary report from HL

1 day ago

dragon328

HL data shows that foreign funds turned net buyers of IOIPG yesterday with a net purchase of RM7 million, while local funds became the net sellers with sale of RM8 million worth of IOIPG shares.

Interesting.

23 hours ago

cantona762

dragon328, where to see this info? ok to share?

22 hours ago

newbie9893

Price drop everyday till mother also cannot recognise...better kasih LD today

22 hours ago

dragon328

I got the data from HL daily update messages via whatsapp.

I still cannot find the daily fund flows data in Bursa website, though @sg999 has sent me a link to Bursa that shows the weekly fund flows data.

22 hours ago

dragon328

Ya it is disheartening to see IOIPG share price dropping everyday non-stop.

But now I don't bother much about who is selling or why they are selling, I just fall back to fundamentals. As long as the fundamentals of the company have not changed to the worse, I will continue to accumulate the stock. Better now when somebody else makes the effort to depress the share price for us to collect cheaper.

22 hours ago

dragon328

I remember during the long rally of YTL Power share price, there were a few bumps along the way:

1) YTLP share price surged to a high of RM0.83 in April 2022 only for it to drop back to RM0.60 in June 2022

2) It rallied up to RM1.33 in May 2023 then got sold down heavily in June 2023 to RM1.15 due to the news of Singapore implementing Temporary Price Cap from July 23

3) It then rallied up to a high of RM2.20 in Aug 2023 then got sold down to RM1.80 in Oct 2023 for no obvious reason

4) It rallied up strongly in Jan 2024 to a high of RM4.24 and then dropped heavily to a low of RM3.50 in early March 2024

5) It further surged to a high of RM5.48 in May 2024 only to drop back to RM4.61 in June 2024

Some of the selldown was with no obvious reason, at least the reason remains unknown to me till now. So I will not speculate further who is selling IOIPG recently, as I will never know it exactly. Foreign funds sold some IOIPG some RM15m worth of IOIPG last week only to buy back some RM7m yesterday, so nobody knows how they will play it out.

21 hours ago

dragon328

But to those short term traders or those investors with limited capital left to average down, the falling share price is devastating. You may want to adopt some form of cut loss strategy.

21 hours ago

dragon328

I am pretty relaxed now and won't look at it every moment, will buy more when it hits some temporary bottom.

21 hours ago

Permutation

@dragon328, Am I right to say that chartwise, the counter is now pretty bearish if not shitty. The counter is expected to trend lower/ side way in the short term before it gets better?? yes, the fundamental is still intact. Perhaps if one takes a 2-3 year time horizon, like you said, will see your return double or more.

19 hours ago

cantona762

yeah. depends on your own strategy and holding power.

19 hours ago

dragon328

@Permutation, I am not good at reading technical charts, but purely looking at the short term chart with MACD still in the 38th day of dead cross, the short term chart indeed looks bearish.

But any bearish chart may change to bullish if the stock price stages a strong rebound like >10% in a day or 20%-30% within a week. I have no crystal ball to foretell when the chart will turn bullish.

I am more towards a fundamental investor, my strategy is always buy on weakness and add more when the share price goes lower than my initial purchase price, as long as the company fundamentals remain intact.

17 hours ago

dragon328

And do not forget a stock chart can be easily manipulated if the volume is not big enough.

A shortie can dump the share price to a level just to make the chart to send out a SELL signal, and the opposite is true.

17 hours ago

stockpicker888

@dragon328 if a rise in share price is not supported by its fundamentals, any gain would only be short term (unsustainable run); vice versa.

17 hours ago

stockpicker888

BTW, collected some at 1.97 today. All the best for those who stayed.

17 hours ago

Permutation

@dragon, TQ

16 hours ago