Earnings Beat: IOI Properties Group Berhad Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

A week ago, IOI Properties Group Berhad (KLSE:IOIPG) came out with a strong set of yearly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of RM3.1b, some 5.0% above estimates, and statutory earnings per share (EPS) coming in at RM0.19, 155% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, IOI Properties Group Berhad's eight analysts are now forecasting revenues of RM3.60b in 2026. This would be a notable 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to crater 39% to RM0.12 in the same period. In the lead-up to this report, the analysts had been modelling revenues of RM3.50b and earnings per share (EPS) of RM0.12 in 2026. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a notable to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

See our latest analysis for IOI Properties Group Berhad

There's been no major changes to the price target of RM2.61, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values IOI Properties Group Berhad at RM4.05 per share, while the most bearish prices it at RM2.01. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting IOI Properties Group Berhad's growth to accelerate, with the forecast 17% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect IOI Properties Group Berhad to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at RM2.61, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on IOI Properties Group Berhad. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for IOI Properties Group Berhad going out to 2028, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 4 warning signs for IOI Properties Group Berhad you should be aware of, and 2 of them are potentially serious.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.