KUALA LUMPUR: Despite the on-going challenges in the property market, Public Investment Bank (PIVB) Research is reaffirming its outperform call on I-Bhd
.
The research house on Tuesday said the company’s value proposition is attractive for its prime position in benefiting from the urbanisation of the outer Klang Valley region (Klang and Shah Alam) despite challenges in the property market.
“Pace of sales this year has matched last year’s, showing no discernible slowdowns as yet, a testament to the market segment it serves which is still seeing demand.
“With only about 15% of its gross development value (GDV) crystallised, I-Bhd’s story is only just unfolding.
"Our Outperform call is reaffirmed, while we raise our target price to 91 sen (from 73 sen previously), as we narrow our discount to RNAV, from 60% previously to 50%, with the company continuing to deliver consistently. We see scope for upgrades in the future,’’ it added.
Slated for launch in 2017 is part of the “Central Towers” development, comprising an office tower and residential suite towers above the DoubleTree by Hilton hotel which it has dubbed “Converse @ i-City” given its integration of Internet of Things functionalities.
On this note, the research house said it viewed the company’s recent partnership with Huawei Technologies positively as it works toward being at the forefront of incorporating technological advancements into its product offerings, which is looking increasingly to be the next wave in property development.
I-Bhd reported another set of strong quarterly numbers, underpinned by growing contributions from its property development segment, which remains on track to achieving its medium term goal of generating a steady-state revenue of RM500mil per annum.
Third quarter (Q3 FY16) net profit grew 159.3% y-o-y to RM22.4mil, contributing to a cumulative nine months net profit growth of 91.6% y-o-y to RM52.4mil.
“Though only making up 61.6% of our full-year estimates, we deem the results broadly in line as we anticipate stronger recognition in the final quarter to bring numbers in-line,’’ the research house noted.
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