LONG TERM GROWTH PROSPECTS FOR I-BHD

Tuesday, 19 January 2016

KUALA LUMPUR: PublicInvest Research continues to like property-based I-Bhd for its longer-term growth prospects and its prime position in benefitting from the urbanisation of the outer Klang Valley region such as Klang and Shah Alam.

The research house had on Tuesday reaffirmed its Outperform call with an unchanged target price of 65 sen as it tagged a 60% discount to the fully-diluted sum-of-parts value of RM1.63 per share.

On Monday, I-Bhd awarded the piling and basement structural works for its shopping mall to Pintaras Jaya at a contract value of RM72.8mil.

With works now underway, this integral element of its property investment portfolio is expected to come on-stream in August 2018, solidifying its earnings base further upon opening.

I-Bhd is also looking to launch its theme-styled Hyde Towers next month, following recent and successful launches of similar-styled Liberty and Parisien Towers.

Unbilled sales is at RM679.2mil as at September 2015, and expected to grow further with this upcoming launch and the planned 8Kia Peng @ KLCC later this year.

“An integral part of its property investment portfolio, the RM850mil Central Plaza @ i-City is the first-of-its-kind regional shopping mall in the country which will be the crowd-puller,” it said.

The mall will be jointly developed by the Central Pattana Group (CPN), Thailand’s largest retail developer and which will hold a 60% equity stake in the JV company, and I-Bhd holding the remaining 40%.

CPN will take the lead in developing, leasing and managing the mall, targeting 300 retail outlets, anchor tenants and key retailers from Thailand.

Situated on an 11.12acre plot and with a net lettable area of 1m sq ft, the mall is targeting a 2018 opening and which should contribute a consistent annual income of about RM17m to the Group.

Hyde Towers is a 43-storey tower block with units ranging from 465 sq ft to 765 sq ft, with choices of one or two bedrooms and standard or duplex layouts.

Residents of Hyde Tower will also have direct access to the mall via a passenger linked bridge. Gross development value is estimated at about RM270mil.

Credit : http://www.thestar.com.my