KUALA LUMPUR (Jan 15): Lee Yeow Seng, CEO of the just-listed IOP Properties Bhd, said he is confident of the company's business prospects despite a challenging outlook for the property sector this year.

Speaking at the listing ceremony today, the second son of IOI Group founder and chairman Tan Sri Lee Shin Cheng said it will be a challenging year in 2014 due to the government's several cooling measures.

"Nevertheless, we are very positive due to our diversity in geographical locations and the different market segments we serve in Malaysia, Singapore and China," said the junior Lee.

"Apart from these countries, we are always on the lookout for new investment opportunities. But, at the moment there is not," said Lee Yeow Seng.

He said IOI Properties would not rule out making forays into the United Kingdom, following in the footsteps of SP Setia Bhd and Sime Darby Bhd, but it has not studied the market yet.

Commenting on dividend policy of IOI Properties, Lee said: "The more (profits) we make, the more we will be able to pay off (dividends)."

Lee also echoed his father's views on the company focus.

Tan Sri Lee had remarked that sustainable growth and profits are the priorities for IOI Properties going forward.

The IOI Group founder and chairman said today IOI Properties' opening price of RM3.21 is expected, compared to its reference price of RM2.51 per share.

"There is value in IOI Properties share. We expect the price to be at this range. The stock will not only continue to scale higher today, but for a long time to come," said the senior Lee.

At current market price, IOI Properties has overtaken the biggest listed property player UEM Sunrise Bhd on market capitalisation.

At 11.16 am today, IOI Properties jumped 59 sen or 24% to RM3.10, after hitting a high of RM3.56 per share earlier. The top gainer, also one of the top actives, saw heavy trades of some 35 million shares.

Kenanga Research recommends the stock with a 'outperform' rating and target price of RM3.68. Hong Leong Investment Bank Research said it rated the stock a 'buy' with target price of RM4.01.

On IOI Corporation Bhd, Tan Sri Lee said today the group is "doing very well' as it is a fully integrated plantation firm after the demerger exercise.

But in contrast to IOI Properties, IOI Corporation's share fell 2 sen to RM4.22 in mid-morning trades.




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