PETALING JAYA: After falling short of its target last year, property sales by Ibraco Bhd
are expected to decline in 2026, mainly due to the timing of launches and slower booking conversions.
In a note to clients, TA Research said management has guided for a RM300mil sales target for the current financial year 2026 (FY26), with most launches scheduled for the second half of the year (2H26).
Ibraco plans to launch properties worth RM316mil this year.
In 2025, the group sold RM320mil in properties, below both management’s and TA Research’s RM350mil target.
The shortfall was mainly due to slower booking conversions following tighter end-financing approvals from banks.
TA Research said Ibraco’s key launches in FY26 will come from new phases within the NorthBank township, including the NorthBank Business Exchange commercial component.
The project will be rolled out in stages, resulting in only RM217mil worth of launches this year, compared with the roughly RM700mil gross development value previously guided for the full development.
“Near-term sales in 1H26 are expected to be supported by the conversion of bookings at PrimeBay Industrial Park, the group’s maiden industrial development launched last year, with about 20% take-up so far. Sale and purchase agreement signings are targeted for the first quarter of 2026.
“Promotional campaigns are also expected to help improve sales momentum at NewUrban Residence in PJ South, where take-up currently stands at around 45% ahead of its 2027 completion.”
Looking ahead, TA Research noted that construction remains Ibraco’s primary earnings pillar, supported by its current project pipeline.
As at end-FY25, Ibraco’s construction order book stood at RM734.9mil, providing earnings visibility over the next two years.
Key projects currently underway include the Kuching Autonomous Rapid Transit (ART) system and the Sarawak Second Trunk Road in Samarahan, both progressing steadily and expected to underpin construction revenue through FY26–FY27.
With these two infrastructure projects accounting for the bulk of the current order book, construction earnings are expected to closely track project progress over the next two years.
“Management also indicated that it is exploring potential new business opportunities, although no specific sectors were highlighted during the current briefing.
“In previous engagements, management had mentioned interest in renewable energy-related opportunities, leveraging its experience in industrial facilities such as methanol plant infrastructure.
“Management is targeting around RM1bil worth of construction job wins in FY26, supported by an active tender book of approximately RM1bil.
“The group has also received a letter of intent for a sizeable government quarters project at end-FY25, currently undergoing final negotiations ahead of a potential award.
“Additional upside could come from the Kuching ART Green Line, which remains pending tender,” the research house said.
It also pointed out that Ibraco’s management indicated the final dividend will be proposed ahead of the AGM and is subject to shareholders’ approval.
“We forecast a final dividend of 4.5 sen per share, implying a 34% payout ratio.”
Ibraco does not have a formal dividend policy, although it has historically maintained an average payout of about 39% over the past five years.
TA Research has upgraded its rating for Ibraco to “buy”, while maintaining its target price at RM1.32 per share.
