BIMB Securities starts coverage on IOI Properties, target RM2.49

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KUALA LUMPUR (April 21): BIMB Securities Research has initiated coverage on IOI Properties Group Bhd (IOIP) with a “buy” rating at RM2.18 and target price of RM2.49 and said that IOIP came back with a leaner structure comprising of 3 core segments which are (i) property development; (ii) property investment; and (iii) leisure & hospitality.

In a note today, the research house said it favours the group for its a) current share price trading at a discount c.36% to its NTA per share of RM2.97; b) landbank reserve circa 10,000 acres that would last the group for the next 10 years with potential GDV of RM50 billion; c) possible easier landbank replenishment with the backing from IOIC; d) township projects being the bread and butter for the group.

“We derived a target price of RM2.49 based on a blended PE & PBV premised on our FY16 forecast.

“We initiate coverage on IOIP with a Buy rating,” it said.