In her Jan 18 note, Nazira figures IOI Properties, led by CEO Lee Yeow Seng, to be worth RM3.06 per share, which is an upside of some 50% from the current levels. The target price is pegged to a 45% discount to its RNAV of RM5.53 per share.
Nazira Abdullah of UOB Kay Hian has initiated coverage on IOI Properties with a "buy" call, citing growing contributions from its investments in Singapore that will lead to a three-year earnings growth at a CAGR of 26%.
Given the company's sprawling portfolio of investment properties carried at some RM18 billion, further upside can come from a potential spin-off of some of these assets into a REIT, she adds.
