IOI Properties’ projects in China continues
Source: The Borneo Post
KUCHING: IOI Properties Group Bhd’s (IOI Properties) projects in China is back in operations after the overall situation has improved in the country.
According to AmInvestment Bank Bhd (AmInvestment Bank) in an update on the group, the overall situation has improved beginning early March as factories in China gradually restarted production and workers returned to their working place.
As of mid-March, economic activities have resumed, with capacity picking up.
At the same time, IOIPG has recommenced its operation in Xiamen, China.
“IOI Properties is planning to launch its Xiamen 2 project progressively in May 2020,” AmInvestment Bank confirmed in its report. “The anticipated gross development value (GDV) for Xiamen 2 is approximately 800 million yuan (about RM493 million) comprising high-rise residential and landed residential.
“Meanwhile, Xiamen 3 is scheduled for launching in the later part of C020.”
Meanwhile in Malaysia, IOI Properties stressed that post movement control order (MCO), work shifts of construction jobs will need to be increased to clear backlogged work due to the MCO.
“The company is still assessing the local property market, and may consider reducing its sales target,” the research firm said.
“We make no changes to our FY20–FY22 earnings forecasts at this juncture. To recap, we have cut our FY20–FY21 earnings forecasts by 6.1 and 5.9 per cent respectively in our previous sector report to reflect the impact of the MCO and its spillover effects to the economy which may result in lower revenue recognition.
“We reckon that the long-term outlook for IOIPG remains stable anchored by a positive contribution from its property development projects and steady income from its property investments.
“We view the recent selldown on the stock as a buying opportunity with a potential upside of about 50 per cent, hence we are maintaining our buy recommendation.”