This website uses cookies to ensure you have the best experience. Learn more

Ioi Properties Berhad Financial Analysis

1508 words - 6 pages

Company OverviewThe IOI Group's property business are principally carried out by the Company's 69% owned listed property arm, IOI Properties Berhad. The main stream of the property business is the development activities, which contributed more than 90% of the overall property business's operating profit. Besides, the Group is also involved in property investment and most of the investment properties held by the Group are mainly in respect of retail complexes and office buildings developed as part of our township development.Over the years, the Group has build a reputation as a reliable and successful township developer with our mainstay being the Puchong growth corridor and southern Johor.The Group's property investment portfolio comprises mainly of retail and office space totaling approximately 1.6 million sq ft of net lettable space (FY 2004 - 1.8 million sq ft), of which about 100,000 sq ft is located in Singapore.Property Market AnalysisThe overall property market has become much more competitive and challenging as a result of some of the external factors such as rise in oil prices. Persistently high oil prices which have decelerated economic growth and affected prices of household items significantly over the last one year has rendered house buyers becoming more cautious to commit and hence affected the sentiments which were more buoyant a year ago. That's reflected in a gradual drop in company revenues from year 2003 to 2005. Nevertheless, the improved accessibility with the opening of the Bandar Puteri interchange coupled with increased commercial activities in Bandar Puteri has attracted not only the residential buyers but also significant interests in the commercial and shop houses. It contributed to the overall profitability IOI Properties Berhad and helped the company to offset impact from lower sales of residential units.Financial AnalysisGross Profit Margin- The ratio is often seen as indication of quality of services provided and efficiency as far as cost structure is concerned. Gross Profit Margin ratio is a very important indicator in the property industry, where companies try to keep their cost structure low in order to reap high profit margins. In the case of IOI Properties, its 3-years gross profit margin average hovers around 51%, which can be considered as a good indicator. Looking at its revenue trend, we can infer that its gross profit margin is maintained high mainly due to a low cost structure and new market opportunities. For example, in year 2005, its revenue declined from RM 678 Mil to RM 591 Mil, yet its Gross Profit Margin showed an increase of 7%. That can imply that IOI Properties is a low cost operator. Compared to 3 years industry average, gross profit margin of IOI is higher than the industry players. If we analyze the gross profit margins of Negara Properties, Glomac & Talam, we will find out that IOI shows the highest gross profit margin indicating to the fact that IOI is a cost efficient operator compared...

Find Another Essay On IOI Properties Berhad Financial Analysis

Capital Structure in Malaysia Essay

3434 words - 14 pages showed they are efficient in turning their inventory (the number of on-going projects) into sales. For financial leverage, IGB Corporation showed better result than Encorp. This may be due to the less number of activity undertaken by the company as well as the financial consideration for the projects undertaken is not as high as the capital expenditure for projects undertaken by Encorp Berhad for which the projects development are more recent.. In general overall finding of this study showed that both company are financially sound. This is proven through the number of projects and the result of properties sold before the project’s completion.

Introduction of Corporate Governance: Company Law Malaysia

2230 words - 9 pages board meetings held during a financial year, or else she has to vacate her office of a director . Furthermore, the board should also ensure that its members have access to appropriate continuing education programs in order to update their knowledge and enhance their skills to sustain in the current business environment . This can be done by providing financial analysis workshops, motivational trainings, leadership courses, and more. Principle 5

Marketing Communication Audit: The Astro Malaysia Holdings Berhad

2331 words - 9 pages organization that will be discussed for this assignment is the Astro Malaysia Holdings Berhad. The main reason this organisation is been chosen is because Astro Malaysia Holdings Berhad is one of the successful and highest integrated buyer media entertainment group in Malaysia and also in Southeast Asia. Thus, auditing the marketing communication tools that are being used by Astro Malaysia Holdings Berhad are needed to accessed the effectiveness of

Environmental Reporting

1008 words - 5 pages Berhad, 2013). However, the companies are allowed to provide any extended environmental information voluntarily, which relevant for them in order to manage the impacts of their operations, lessen potential risks related to key environmental issues and capitalize on business opportunities (Bursa Malaysia Berhad, 2013). The growing financial materiality of energy use, greenhouse gas emissions, waste disposal and water use caused the demand for

Bank's Liquidity

3184 words - 13 pages , 2009). Secondly, as unfavourable financial event remains unfold, house prices keep deteriorating, so quality of securities that backed with properties will drop, thus the value of the securities will not as valuable as before (Stowe, 2007). Hence, these will seriously undermined investor confidence and continue to put strain on the financial markets.According to the discussion above, CBO should not plan to participate in the near future. As CBO

Build Operate and Transfer a Type of Arrangement

1043 words - 4 pages Highway (LATAR) is the newest highway in operation in Malaysia. The concession was awarded to Kuala Lumpur-Kuala Selangor Expressway Berhad (KLKSEB) in 1997 through BOT scheme arrangement but due to the Asian Financial Crisis in 1997, the project did not took off until it was revived in 2008 with a new supplemental agreement signed with the government (Arulampalam, 2011). Construction of the highway started in 2008 and it was completed and opened

Real Options: Arturo Berhad Should Expand The Business

2218 words - 9 pages average. It is also the minimum average rate of return it must get on its current assets to satisfy their stakeholders or anybody who has financial interests in the firm. Works Cited Investopedia, (2009). Real Option Definition | Investopedia. [online] Available at: http://www.investopedia.com/terms/r/realoption.asp [Accessed 28 Apr. 2014]. Mun, J. (2006). Real Options Analysis versus Traditional DCF Valuation in Layman’s Terms

A Case Study: Maybank Singapore Islamic Banking

2049 words - 9 pages 1. Introduction Malayan Banking Berhad (“Maybank”), a state-owned Malaysian lender and one of the top five banks within the Association of Southeast Asian Nations (Business Monitor International, 2014), expanded its operations in Singapore in 1960 to “be a regional financial services leader” by “humanising financial services across Asia” (Maybank, 2014). Maybank Singapore is Group’s largest overseas unit in terms of assets. Maybank Singapore

Business Analysis: Nestle and Dutch Lady

3147 words - 13 pages 1. INTRODUCTION In this assignment, we will be conducting a business analysis on two major corporations in the same industry. Nestle and Dutch Lady. The analysis will be based on the companies’ performance for both the years 2011 and 2012 and the data will be extracted from the companies’ financial reports. 2. PROFITABILITY 2.1 Return on ordinary shareholder’s fund (ROSF) According to the chart above, there is an increase on

Finance for Managers

6358 words - 25 pages distinction would have been able to be made more precisely.Description“Brookfield Properties is a publicly-traded North American commercial real estate company listed on the New York and Toronto Stock Exchanges under the symbol BPO.” (2006 Annual Report) The company owns, develops, and manages premier properties in high growth financial districts within high demand metropolitan areas within North America. In the last four years, since 2003

AirAsia Company

961 words - 4 pages family. They have been working in the best working conditions. AirAsia products have been of high quality and minimum complaints have been experienced. The company has been making high profits in the few past years according to the financial statements. Market analysis AirAsia Company has been operating with routes in an average of twenty countries and it is still expanding to different parts of the world. This company has alliance with other

Similar Essays

Multi Purpose Holdings Berhad Financial Management Analysis

1634 words - 7 pages Bursa Malaysia is an exchange holding company approved under Section 15 of the Capital Markets and Services Act (Bursamalaysia.com, 2014). It operates a fully-integrated exchange, offering the complete range of exchange-related services including trading, clearing, settlement and depository services. 1.1 Magnum Berhad (3859) Formerly known as Multi-Purpose Holdings Berhad, the company has changed its name to Magnum Berhad in July 2013

Financial Accounting Essay

2034 words - 9 pages commercial properties, property development and club operations. For infrastructure concession Gamuda Berhad will make development, financing, operating and transfer on term of infrastructure, which is development of residential and commercial properties, and club operations, and dihydrogen monoxide and expressway concessions and for Township Development, Gamuda Berhad make an orchestration, design and develop astronomically immense-scale

Genting Berhad Essay

3020 words - 12 pages recognize and reward performance and contributions of employees and provide proper training, development and opportunities for career advancement. Last but not least, they also empower their goal by be a responsible corporate citizen, committed to enhancing corporate governance and transparency. In year 2011, financial highlights for Genting Berhad indicate rapid growth compared to year 2010. This company owned employed assets totaled RM54.3 billion

Corporate Crime Essay

3467 words - 14 pages of Risk and Insurance. 57(2). 282-306. Teall, J. (2012). Chapter 4: Event studies and back testing. Financial Econometrics modeliing. (lecturer notes) Retrieved dec 18, year, from Voon, M. L., Voon, S. L., & Phua, C. H. (2008). An empirical analysis of the determinants of corporate crime in Malaysia. International Applied Economics and Management Letters. 1(1). 13-17. Cronovich, R. (2007). Principles of Economics (4th edition). N. Gregory