Fundamentals intact for IOIPG despite gearing rise

PETALING JAYA: IOI Properties Group Bhd's (IOIPG) lofty valuations despite the stronger-than-expected earnings is tempering optimism over the company's improving operational performance, with analysts pointing to concerns over elevated gearing.

Fundamentals intact for IOIPG despite gearing rise. PETALING JAYA: IOI Properties Group Bhd ’s (IOIPG) lofty valuations despite the stronger-than-expected earnings is tempering optimism over the company’s improving operational performance, with analysts pointing to concerns over elevated gearing. Research houses generally agreed that IOIPG’s medium-term outlook remains supported by stronger recurring income from its Singapore assets, ongoing land monetisation exercises and the proposed Malaysian real estate investment trust (REIT) listing. However, several analysts downgraded the stock after its strong share price rally this year. TA Research said: “We remain positive on IOIPG’s medium-term fundamentals, but see a more balanced risk-reward, with elevated gearing the key concern.” The research house downgraded the stock to a “hold” from “b...