Stock Name: IOICORP
Company Name: IOI CORPORATION BHD
Affin Investment Bank upgraded IOI Corporation Bhd to 'add' from 'reduce' after the property and plantations group proposed to spin off its property business as a separate and independent listed company.
The broking house also raised its target price on IOI Corp to RM5.62 per share from RM4.93.
"We believe revalued net asset value (RNAV) valuation with an appropriate discount based on the quantum of future earnings stream has basis for property companies with large land banks," Affin said in a research note on Wednesday.
It pegged the new listed property firm at RM4.42 per share, a discount to the RNAV.
The property firm is expected to be the largest of its kind in Malaysia with a total asset size of almost RM15 billion and total land bank of over 10,000 acres, spread across Malaysia, Singapore and China, according to Affin.
Total gross development value over the next three years is estimated at RM16 billion, it added.
Shares of IOI Corp dropped 0.18 per cent to RM5.45 per share at 10.07am, underperforming the benchmark stock index's 0.28 per cent rise.-- Reuters
Company Name: IOI CORPORATION BHD
| Research House: AFFIN | Price Call: BUY | Target Price: 5.62 |
Affin Investment Bank upgraded IOI Corporation Bhd to 'add' from 'reduce' after the property and plantations group proposed to spin off its property business as a separate and independent listed company.
The broking house also raised its target price on IOI Corp to RM5.62 per share from RM4.93.
"We believe revalued net asset value (RNAV) valuation with an appropriate discount based on the quantum of future earnings stream has basis for property companies with large land banks," Affin said in a research note on Wednesday.
It pegged the new listed property firm at RM4.42 per share, a discount to the RNAV.
The property firm is expected to be the largest of its kind in Malaysia with a total asset size of almost RM15 billion and total land bank of over 10,000 acres, spread across Malaysia, Singapore and China, according to Affin.
Total gross development value over the next three years is estimated at RM16 billion, it added.
Shares of IOI Corp dropped 0.18 per cent to RM5.45 per share at 10.07am, underperforming the benchmark stock index's 0.28 per cent rise.-- Reuters
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