18 January 2014

IOI Prop - Biggest Market Cap Developer Company in Malaysia

Mr. Lee, Malaysia Chinese tycoon  has passed over his leader position to his younger son to lead IOI Properties, which was listed recently. The good news is that, IOI Properties has taken over UEM Sunrise, a so called GLC that has load of land banks especially in Iskandar Malaysia which over RM10 Billion market cap (although the size is not as big as Capitaland, but I would still have to congratulate the success story it created so far).

The younger Mr Lee had a target of around RM 2 - 3 Billion billings target for next couple of years, which may translate to around RM 1 Billion net profit. The reason why it could have such as high net profit margin compared to SP Setia or Mah Sing was that the land banks actually was acquired since long time ago for oil palm plantation. And since demographic changes, the group converted to residential purpose and hence enjoy a better and higher profit margin compared to palm oil business.

To me, this is part of the ways to get rich, as they could add value to the land banks and bring benefits to more people. I believe Malaysia is now like Singapore 20 to 30 years ago, that they would try to upgrade themselves to a service hub such as Islamic Finance Hub and regional logistic hub.

Nonetheless, I believe that there is a long way to go for Malaysia to be a better country. I sincerely hope the government could attract more foreign direct investment to bring more job opportunities to the residents here. If Malaysia could be a 1st world country few years later, I believe it could attract talents working in oversea to come back to their homeland, sooner or later.

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