IOI Properties Group Berhad Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

As you might know, IOI Properties Group Berhad (KLSE:IOIPG) just kicked off its latest full-year results with some very strong numbers. The company beat forecasts, with revenue of RM2.9b, some 6.0% above estimates, and statutory earnings per share (EPS) coming in at RM0.37, 187% 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for IOI Properties Group Berhad

Taking into account the latest results, the current consensus from IOI Properties Group Berhad's eight analysts is for revenues of RM3.35b in 2025. This would reflect a notable 14% increase on its revenue over the past 12 months. Statutory earnings per share are expected to nosedive 66% to RM0.13 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM3.15b and earnings per share (EPS) of RM0.15 in 2025. While next year's revenue estimates increased, there was also a substantial drop in EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

There's been no major changes to the price target of RM2.65, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic IOI Properties Group Berhad analyst has a price target of RM3.60 per share, while the most pessimistic values it at RM1.71. 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. It's clear from the latest estimates that IOI Properties Group Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.1% p.a. 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 8.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that IOI Properties Group Berhad is expected to grow much faster than its 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 RM2.65, 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 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 3 warning signs for IOI Properties Group Berhad (of which 2 don't sit too well with us!) you should know about.

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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.