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BUSINESS • 26/11/2024 02:09 PM

IOI Properties Among Top Losers On Bursa Malaysia After Disappointing 1Q Earnings

KUALA LUMPUR, Nov 26 (Bernama) -- IOI Properties Group Bhd (IOIPG) became the second biggest loser on Bursa Malaysia at midday after its first-quarter earnings for the financial year ended June 30, 2025 (1Q FY2025) missed expectations.

At 12.30 pm, the counter lost 19 sen, or 8.6 per cent, to RM2.02 with 10.16 million shares traded.

Hong Leong Investment Bank (HLIB) said IOIPG’s profit after tax and minority interests (PATAMI) for 1Q FY2025 (-38.1 per cent quarter-on-quarter, -57.3 per cent year-on-year) was below the investment bank’s and consensus expectations, making up 9.6 per cent and 9.5 per cent of full-year forecasts, respectively.

The negative deviation in results was due to weaker-than-expected property sales and lower-than-expected contributions from joint venture (JV) and associates.

“Given the results shortfall, we cut our FY2025, FY2026 and FY2027 forecasts by 17.1 per cent, 2.8 per cent and 1.4 per cent as we impute lower property sales assumptions and lower contribution from JV,” it said in a note.

However, HLIB maintained its buy recommendation on IOIPG with an unchanged target price of RM4.05 based on a 35 per cent discount to its estimated revised net asset value of RM6.24.

“Despite the temporary blip experienced by the group, we remain confident that the group should deliver sequential improvements ahead,” it noted.

In its view, IOI Properties' prospects are improving as key markets Malaysia, Singapore and China are currently seeing a rejuvenation.

“The group is now unleashing significant value from its jewel assets in Singapore, namely IOI Central Boulevard and Marina View Residences, which should anchor strong earnings ahead for 2025 and beyond,” it added.

IOIPG's net profit declined to RM69.17 million in 1Q FY2025 from RM174.45 million a year earlier.

Revenue, however, increased to RM687.85 million from RM648.05 million previously, mainly attributed to improved performance in the property investment segment and hospitality and leisure segment.

-- BERNAMA

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