I-Berhad: Rebuilding Property Economics - Can AI and Robotics Help?

Value Investing Case Study 117-1: A fundamental analysis of i-Berhad to assess whether this is an asset-backed value with execution-driven upside.  

At first glance, I-Berhad looks like a familiar story. Revenue today is lower than it was a decade ago. Returns on capital have struggled to clear the cost of capital. Earnings per share declined. 

But that surface view misses what has quietly changed underneath. Over the past decade  I-Berhad has transformed from a cyclical property developer into an asset-backed urban ecosystem operator anchored on i-City. 

Property development is no longer the dominant earnings engine. Instead, leisure, hospitality and investment properties now form the core of the business. This shift has materially altered the company’s risk profile. 

Yet returns remain modest, raising a more interesting question than “why didn’t it recover?”. Is I-Berhad a value trap or an under-recognised asset platform with conditional upside? 

The answer hinges on two things.

• The quality of the post-2020 recovery.  Some of the apparent improvement in property development profitability is supported by rental income from unsold units - a stabiliser, but also a signal of pipeline weakness.

• Management is now positioning AI and robotics as a way to rebuild the property development pipeline. If successful, this could change the economics of the development segment. 

The full analysis digs into the various value drivers. 

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If the above article was useful, you can find more insights on how to make money in my e-book. The e-book is now available from Amazon, Kobo and Google Play.

PS: If you are in Malaysia or Singapore, the e-book can only be download from Kobo and Google Play. 

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I am not an investment adviser, security analyst, or stockbroker.  The contents are meant for educational purposes and should not be taken as any recommendation to purchase or dispose of shares in the featured companies.   Investments or strategies mentioned on this website may not be suitable for you and you should have your own independent decision regarding them. 

The opinions expressed here are based on information I consider reliable but I do not warrant its completeness or accuracy and should not be relied on as such. 

I may have equity interests in some of the companies featured.

This blog is reader-supported. When you buy through links in the post, the blog will earn a small commission. The payment comes from the retailer and not from you.

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