IOIPG (5249): Company Profile

And now decline Shenton acquisition

Means quicker move into reit?
https://theedgemalaysia.com/node/724672

3 weeks ago

The decline of Shenton House proposal is a good deed by IOIPG management and board of directors. The explanation given is just right as it would increase IOIPG gearing further to 0.89x.

Recall that IOIPG share price suffered heavy selling in the few days before the Shenton House proposal was announced, the share price dropped from RM2.50 level to RM2.00 level. Now that the proposal is rejected, the share price should at least climb back to RM2.50 level.

3 weeks ago

Yeah this brings the numbers back to required level; next is to push for REIT and lift further to 2.90-3.10

3 weeks ago

sg999

there is no banker control ioipg, beware on tmr might open high close low again, whole property sector is sinking now.

3 weeks ago

Agjl

Excluding fair value, PBT ard 84m. M i right?

3 weeks ago

stockpicker888

Hi Dragon328, underlying PBT of the quarter is almost halfed YOY, mainly due to greater write-offs and depreciation , but I do see property segments improved YOY (however QOQ decreased by around 20mil/9%) . What do you think of this quarter’s performance looking purely at the core of the business?

3 weeks ago

@Agjl, excluding the revaluation gains and impairments, the underlying PBT is RM87.3 million as stated in the report. But in the hotel segment, there was additionally some higher depreciation and write-off of hotel assets totalling RM96.7m, if I exclude the write-off of hotel assets, I estimate the underlying PBT would have been around RM170 million.

3 weeks ago

@stockpicker888, as explained above, there was some hotel asset write-off in the hospitality segment in Q4 FY2024, which I suspect was related to old assets at the recently acquired W Hotel KL. I would treat it as one-off and estimate it to be around RM80m.
So I would put the core PBT of Q4 FY2024 to be around RM170m which would be some 60% higher than last year Q4.

3 weeks ago

Against Q3 FY2024, Q4 core earnings would have been higher as well. Recall that in Q3 Fy2024, the earnings were boosted by a land sale amounting to RM211 million.

3 weeks ago

stockpicker888

@dragon328 you're absolutely right, while waiting for your response, my doubt has been clarified via looking back at Q3 report. Hence, core property business + hotel/mall segments are generally improving YOY and QOQ basis. Coupled with the rejection to take over Shenton House, hopefully, investors would finally see the intrinsic value of this gem. Next up, I'm anticipating the further reveal of the the Johor-SG SEZ deal, to be the next catalyst of its share price. Fingers crossed , and happy investing to all.

3 weeks ago

Agjl

Sg999….i think u might be right. Today open high and close low for the day… sold tis morning ard 2.05 hope to buy back later.. the company is good but sentiments are not so favorable at the moment. Thus i sold. Happy hunting. Cheers!

3 weeks ago

Agjl

Dragon…thanks for the clarifications. Cheers!

3 weeks ago

https://www.nst.com.my/property/2024/08/1098624/ioi-properties-may-revisit-shenton-house-acquisition-market-insiders

https://klse.i3investor.com/web/blog/detail/dragon328/2024-08-29-story-h-153177383-IOIPG_The_Dawn_of_Explosive_Earnings_Growth

My analysis of IOIPG Q4 result as above for your leisure read. It is good for long term investment.

2 weeks ago

teochaimou

2 weeks ago

raymondroy

missed out on this development..... rejection of CEO's offer on shenton house, but surprisingly IOIPG has agreed to be the exclusive project manager and some extend developer as well as first rights of refusal on the purchase.... interesting'

https://www.nst.com.my/business/corporate/2024/08/1097980/ioi-properties-rejects-ceo-lees-offer-buy-shenton-house-will

2 weeks ago

Eagle77

Recession is coming, Mpox also coming ⬇️⬇️⬇️🩸🩸🩸TP 1.50 below ☠️

2 weeks ago

Eagle77

Fake buy call by the IB just look at YTL today by call RM6-7 but plunging nonstop till 3.70 ⬇️⬇️⬇️🩸🩸🩸

2 weeks ago

After the expiry of a call warrant last Friday, IOIPG can enjoy steady rise now.

With the Shenton House proposal rejected, IOIPG should be gradually going back to RM2.50 level.

2 weeks ago

bullrun2025

@dragon328, below rm2 now

1 week ago

Nadayu

HSR coming soon making all the property stock rebound

1 week ago

Now high gearing is no longer an issue with analysts, who now spell fears on high interest expenses at IOICB that will start to kick in from Q1 FY2025. I think there sell-side analysts have overblown the issue on high interest expense, just like they overblew the issue of high gearing before.

Nonetheless, the overall market sentiment is weak with US stock markets dropping big last week. Yet foreign funds still net bought hundreds of million ringgit worth of equities in Bursa last week. The average cost of entry into IOIPG by foreign funds is slightly above RM2.00, so at current prices below RM2.00 I do not think many foreign funds will sell.

Some local funds are not yet buying in IOIPG as its net gearing is higher than 50% hence is classified as non syariah compliant, but at least we see EPF still accumulating IOIPG in past few weeks.

When foreign funds and local funds are not buying, local retailers tend to sell to cut loss as their holding power is weak.

1 week ago

We may need to wait for 1 or 2 more quarters before we can see meaningful rebounds in the share price of IOIPG, as the company needs to ride through Q1 and Q2 FY2025 when IOICB is expected to incur some losses due to interest expenses kicking in and tenancy remains at 50%.

1 week ago

However, I do not discount the possibility of IOIPG share price rebounding earlier if we can see some good news coming up in coming weeks:

1 week ago

- IOICB secures more tenants beyond the current 50%

1 week ago

- US Fed lowers fund rates by over 25 bps in its September meeting, or cut by 100 bps before end of 2024

1 week ago

- any land sale in Johor
- a sooner turnaround in its hotel business
- potential setting up of a commercial REIT to house its shopping malls and office towers in Malaysia

1 week ago

or the Marina View Residences project receives better than expected responses after launch in September

1 week ago

Hmm need to hold for min 6-7 months

Unless got tailwinds and make the counter enticing again

1 week ago

https://theedgemalaysia.com/node/726505

A positive move by IOIPG, the new industrial park segment may be the next catalyst to propel the company higher in coming 2-3 years

6 days ago

kkl123

PE 5 now
I think can up to Rm3 by end oct24

5 days ago

PE 5, really undervalued by two times

Really need to add some spice to brew the numbers

4 days ago

Possible to land at 2.20 by end of this week? Seeing some upward consistency

1 day ago

2.2 is not a problem. But if you're eyeing 2.2 to sell might as well sell now and speculate somewhere else. Because this one you should be patient and wait for them to announce the game plan

1 day ago

IOIPG has been picking up smallish 2nd 3rd tier properties in Msia...this coincides w a bright outlook in Msia property sector. However, the game is the disposal to REIT. They have a huge Singapore exposure, top tier properties. Bundle it with the 3rd tier malaysia properties add back top tier IOI City Mall, this will be a huge blue chip REIT. What will IOIPG share price be by then?

1 day ago

The game for the low tier properties is to buy it below value and then enhance it a little, inject to REIT at a huge premium. Senior Lee taught his youngest son well

1 day ago

@UncleFollower, you are likely right to point out the game plan of IOIPG, which all sounds well to me. This is evidenced from the recent purchases of W Hotel KL, Langkawi land for a hotel resort development and Tropicana City Mall, all purchased at below book value especially the last one Tropicana City Mall at almost 30% discount to book.

I expect IOIPG to turn around the business and grow them into steady cash cows then inject into REITs. When they inject the matured IOI City Mall, IOI Mall Puchong and this Tropicana City Mall into a commercial REIT in Malaysia at say dividend yield of 5.5%, the potential value of the commercial REIT may be over RM7.0 billion.

IOIPG may inject its hotels into a hospitality REIT separately when the hotels business turns around and yields steady cashflows, once the management estimated that its hotel assets would be worth some RM2.5 billion.

1 day ago

Sure, wanted to keep my portfolio in green haha

IOIPG by valuation on NTA, really can unleash for mega REIT: 2nd gen Lee’s legacy is coming up

1 day ago

When you have the track record and cash pile: 2nd and 3rd tier properties are the main dishes

1 day ago

@dragon given the depth and liquidty of S-REITs over M-REITs + IOI's huge exposure in SG, i think there's a good chance they either list it in SG or have a dual-listed REIT over SGX and Bursa, instead of a M-REIT. Actually if they list it in SG it's good enough, dual-listing it is to be poltiically correct, I guess. YTL's Starhill REIT owns our KL Assets via its S-REIT, that was done before current political climate.

1 day ago

Crown jewels are IOI City Mall + IOI Central Boulevard. And I think the latter is neater, easier, faster. So first a pure play office reit, followed by the retail reit. IOIPG doesnt need to trailblaze, they can emulate Capitaland's model. The SG properties alone should be injected at above RM18B valuation

1 day ago

And now Capitaland have the capacity to buy stake in Club Med, multi billion euro deal

1 day ago