IOI Properties likely to set its FY23 sales target at RM2 billion, says RHB

KUALA LUMPUR (Aug 23): RHB Investment Bank Research has maintained its “buy” rating on IOI Properties Group Bhd with a lower target price (TP) of RM1.18 (from RM1.38) and said the company’s fourth quarter ended June 30, 2022 (4QFY22) results missed expectations, again, due to a further write-down of RM60.2 million for the Xiang’an project in China.

In a note on Tuesday (Aug 23), the research house said full-year property sales hit RM1.93 billion, and management is likely to set its FY23 sales target at RM2 billion.

“Our lower TP reflects prevailing macroeconomic headwinds. IOI City Mall Phase 2 and Central Boulevard Towers in Singapore should drive earnings growth over the next two years, while leasing activities for both properties have been encouraging so far.

“We cut our FY23F-24F earnings by about 14-15% to reflect the macroeconomic challenges ahead. Unbilled sales rose to RM605 million versus RM537 million as at 3QFY22,” it said.