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IPO IOI Properties soars 42% , beats estimates

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IPO IOI Properties soars 42% , beats estimates Empty IPO IOI Properties soars 42% , beats estimates

Post by Cals Wed 15 Jan 2014, 10:22

IPO IOI Properties soars 42% , beats estimates
Business & Markets 2014
Written by Chong Jin Hun of theedgemalaysia.com   
Wednesday, 15 January 2014 10:08

KUALA LUMPUR (Jan 15): Newly-listed IOI Properties Group Bhd soared as much as RM1.05 or 42%, surpassing analysts' fair values ((FV) for the stock. This compares to IOI Properties' reference price of RM2.51 a share for its listing on Bursa Malaysia.

At 9.58am, IOI Properties reduced gains to RM3.08 with some 21 million shares done. The bourse's third-largest gainer and third most-active entity had earlier soared to an intraday high of RM3.56.

In a note today, AmResearch Sdn Bhd analyst Mak Hoy Ken said the research firm is initiating coverage on IOI Properties shares with an FV of RM3.20. This comes with a "buy" call for the stock.

Mak said the FV is a 20% discount to IOI Properties' net asset value (NAV).

"The re-listing of IOIP would likely lead to better share price discovery when valuing its property assets which were previously embedded at the IOI Corp Bhd (IOIC) level," Mak said.

For comparison, RHB Research Institute Sdn Bhd has an FV of RM3.50 for IOI Properties shares. RHB has a "buy" recommendation for the stock.

RHB analyst Loong Kok Wen wrote in a note that IOI Properties' competitive advantage comes from its ability to source land from IOI Corp. This means cheaper land price for IOI Properties compared to other property developers. 

Hence, Loong said IOI Properties' gross profit margin is higher at 56% to 60% versus peers' 25% to 30%.

"We expect (IOI Properties') FY14-15 earnings to grow at 13-15% per year, on the back of MYR1.2bn worth of unbilled sales and MYR20bn development GDV over the next three years.

"Given IOIPG’s (IOI Properties') MYR8.1bn market cap at listing, the company is qualified to be on investors’ radar screens. We initiate coverage on IOIPG with a BUY rating and MYR3.50 FV," Loong said.
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IPO IOI Properties soars 42% , beats estimates Empty Re: IPO IOI Properties soars 42% , beats estimates

Post by Cals Wed 15 Jan 2014, 10:22

Flash IOI Properties' CEO confident of biz prospects despite challenging property sector outlook
Business & Markets 2014
Written by theedgemalaysia.com   
Wednesday, 15 January 2014 10:14

Flash: IOI Properties' CEO confident of biz prospects despite challenging property sector outlook
Cals
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Posts : 25277 Credits : 57721 Reputation : 1766
Male Join date : 2011-09-08
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Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it I’️d have been right perhaps as often as seven out of ten times.”
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis

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