Last updated on August 23, 2025
KUALA LUMPUR: IOI Properties Group Bhd (IOIPG) saw its share price climb in early trading, lifted by upbeat market sentiment.
As of 10.35am, the counter gained two sen to RM2.21 with 465,300 shares changing hands.
In a research note, CGS International Securities Malaysia Sdn Bhd described IOIPG as an undervalued structural growth play, supported by a projected 15.6% compound annual growth rate in forecast core earnings per share for FY2024–FY2027. This growth is expected to come from the expansion of its investment property portfolio and additional contributions from W Residences.
The research house also highlighted potential gearing improvements through the monetisation of investment properties via REIT listings, alongside better earnings quality from resilient recurring income.
“IOIPG is poised to capitalise on accelerating property demand in Johor, fuelled by the Johor-Singapore Special Economic Zone (JS-SEZ), backed by its landbank exceeding 1,214 hectares (3,000 acres),” it said.
The group’s earnings quality has strengthened following the addition of new investment properties and the launch of IOI Central Boulevard Towers (ICBT) in July 2024, with a higher share of contributions from recurring income assets.
CGS International also expects IOIPG’s ongoing acquisition of the remaining 50.1% stake in the South Beach development for S$834.2 million (RM2.75 billion) to be earnings-accretive, despite a likely short-term increase in gearing.
It estimates EBIT contributions from IOIPG’s property investment segment will grow to 47% of group EBIT by FY2027, up from 24% in FY2018—the highest among its Malaysian property sector coverage. This shift would make the group less vulnerable to property development earnings volatility and help narrow the significant discount to its revalued net asset value.
According to recent media reports, IOIPG is considering two REIT listings—one for Malaysian assets valued between RM7 billion and RM8 billion, and another for Singapore-based assets worth S$7 billion to S$8 billion (RM23 billion to RM26 billion).
