IOI Corp's Shares Up 7 Sen On Positive Outlook
Date：2014/11/25
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KUALA LUMPUR -- IOI Corporation Bhd's shares on Bursa Malaysia gained seven sen to RM4.67 as at 10.15 am yesterday, lifted by the company's positive earnings outlook.
A total of 266,200 lots changed hands.
RHB Research said IOI Corp's recently launched City Mall would boost the company's financial year 2016 earnings.
The mall is currently 85 per cent-tenanted and is set to reach full occupancy soon.
"We expect the property developer's earnings in the second half to come in stronger as new projects are progressively rolled out in the coming months, and with sales for the City Mall in the first quarter of financial year 2015 to reach RM370 million," it said in a note Monday.
Given the positive outlook, RHB Research has maintained its 'buy' rating for IOI Corp with a target price of RM3.10.
However, Hong Leong Investment Bank Bhd has downgraded its rating for the company, as it might face sector headwinds in Malaysia.
"We turned more conservative on the group's prospects, especially on its foreign operations.
"As such, we trimmed our financial year 2015 earnings per share by about 22 to 25 per cent," it said.
Hong Leong Investment has lowered its target price for the company to RM2.65 from RM3.94.