One of the Best Property Analysts Sees 100% Upside on IOIPG as “Stars Align” for REIT Listing
StockTipRatings ·
Hong Leong Investment Bank analyst Tan Kai Shuen has raised IOI Properties Group’s target price to RM4.15 from RM4.05, implying a 99.5% upside, while maintaining a Buy rating. Tan is optimistic as “the stars are aligning” for the company’s upcoming Malaysia REIT listing, supported by stronger asset fundamentals, rising investor appetite for yield-generating assets, and a favourable macro backdrop.
The listing timing aligns with IOI City Mall Phase 2’s rental reversion cycle, while the REIT listing should unlock revaluation gains from IOI City Mall, hotel assets, and potential RPGT reversals, lifting book value. Furthermore, with Malaysia REITs generally trading above book value, the company’s planned asset injection could achieve above-book valuations.
As of 10:20 a.m. on November 17, IOI Properties Group's share price rose 1% to RM2.10.
The call: Hong Leong on IOI PROPERTIES GROUP BERHAD
- Rating
- Buy
- Target price
- RM 4.15 (from RM 4.05)
- Upside at call
- 97.6%
Tan Kai Shuen's 12-month track record
No.1 of 16 analysts at Hong Leong
- Success rate
- 67%
- Average return
- 23%
- Stocks covered
- 18
Consensus target price for IOIPG
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