KUALA LUMPUR: After seven years of development, i-City's freehold property development and leisure divisions are starting to show robust growth, as evidenced by a 592 per cent growth in I-Berhad's nine-month 2012 earnings.
OSK Research said with further sales recognition expected from the RM232 million gross development value (GDV) i-Residence (70 per cent sold, 10 per cent pending signing of Sales & Purchase Agreements) and the RM64 million GDV i-SOVO (100 per cent booked) launched last year, I-Berhad earnings are expected to grow further in the fourth quarter of 2012.
It is also expecting to grow another 128 per cent in the 2013 financial year.
The completion of the i-City Interchange and the success in a potential joint venture with the Thailand's largest retail developer, Central Pattana PCL, to build a RM500 million shopping mall should help increase property value and sales, improve tenancy rate and attract more tourists into i-City, the research house said in its report yesterday.
"The stock is still trading below its RM1.58 NTA/share as of September 30, 2012.
"Our price target is pegged to a 10x FY13 PER, translating into 1.4x P/NTA and 3.6 per cent net dividend yield in FY13," said OSK.
SOURCE: http://www.btimes.com.my/articles/jricity/Article/#ixzz2JK7oS78Q
