MBSB Research maintained its BUY call on IOI Properties Group Bhd with an unchanged target price of RM4.64 after FY26 core net income beat expectations, helped by land sales and stronger contributions from its Singapore assets.
The property developer posted FY26 core net income of RM844.6 million, up 184.5% year-on-year and above MBSB Research’s and consensus’ full-year forecasts at 120% and 107% respectively. The stronger-than-expected performance was driven mainly by the recognition of land sales.
For 4QFY26, core net income jumped 6.6% quarter-on-quarter to RM277.7 million as revenue rose 32.4%. MBSB Research said the increase was supported by the recognition of RM257.9 million from the sale of Ampang land, following RM130 million in Malacca land sales recognised in the previous quarter.
The group also benefited from its Singapore assets, including JW Marriott Singapore South Beach, South Beach Avenue and South Beach Tower, alongside rental income from IOI Central Boulevard and IOI City Mall.
IOI Properties recorded RM3.9 billion in total sales for FY26, more than double the RM1.8 billion achieved a year earlier. Land sales contributed RM1.3 billion, while Malaysia accounted for 91% of total sales. Unbilled sales rose to RM2.5 billion, providing less than a year of earnings visibility.
MBSB Research raised its FY27 and FY28 earnings forecasts by 18.5% and 2.8% respectively, citing expected land sale recognition in Banting and Kulai. It said the planned IOIPG REIT listing could also help reduce net gearing, which stood at 0.89 times in 4QFY26.
As of 3.51 pm, the stock price increased by 1.25% to RM4.04.
