KUALA LUMPUR: 2018 is set to be an exciting year for IGB Corp Bhd as several projects are scheduled to be unveiled, according to PublicInvest Research.
It has maintained its Neutral rating with an unchanged target price of RM3, pegged at 56% discount to its RNAV estimate and on par with the cash offer from GoldIS.
Following an update from IGB's management, the research firm noted that Southpoint Tower in Mid Valley City is expected to be completed in H1 2018 due to a change in product mix to one-third residential.
Meanwhile, the RM6bil GDV Mid Valley Southkey project in Iskandar Malaysia is on track to be unveiled by H2 2018 with the grand opening slated for Aug 8, 2018.
As for property development, the group's RM8.4bil GDV mixed-development project in London will see its launch delayed again end-2017 to H1 2018.
Recent disposal of a few underperforming hotels and better-than-expected performance from new hotels have helped improve the group's earnings in recent quarters.
"All told, we adjust our FY17-19 upwards by 5%/12%/11% to account for better performance from these assets. Additionally, the expected completed completion of Soutpoint Tower and Mid Valley Southkey could move the Group’s earnings higher in 2018 and beyond (which are not reflected in our earnings estimates yet).
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