PETALING JAYA: MBSB Research expects active land monetisation by IOI Properties Group Bhd
(IOIPG) in 2026 following the latest land disposal in Kulai, Johor, for RM101mil, right after the landbank monetisation in Banting, Selangor, for RM740.7mil last January.
The research house said: “We see the active land disposal to be marginally positive to IOIPG, as the land disposal will unlock the value of its landbank.”
Besides, the landbank monetisation will lower the net gearing of IOIPG. Note that net gearing of IOIPG is elevated at 0.9 times as of the second quarter of financial year 2026.
According to MBSB Research, the land disposal in Johor is expected to lower net gearing marginally to 0.89 times, while collectively the land disposal in Banting and Johor will lower net gearing to 0.87 times.
It describes the disposal price for Kulai land as decent at RM73 per sq ft, which is in line with the land disposal price of Eco World Development Group’s land in Kulai to Microsoft Payments (M) Sdn Bhd of RM75 per sq ft.
MBSB Research has maintained a “neutral” call on the stock with an unchanged target price of RM3.17.
