I-Berhad says the uneven recovery of the world economy in the face of interest rate increases may call for caution in the business planning and strategies of the company.

While China's reopening will have a favourable effect on the local economy, the company will continue to be cautious against economic headwinds while strategically investing in building value for its major business divisions, said its chairman Tan Sri Lim Kim Hong.

"Higher sales despite economic uncertainties show that people are still investing in properties. However, with more options available to them, they are choosing to invest in properties which they perceive to have better value propositions like i-City," he said.

I-Berhad's net profit increased 61.61 per cent to RM8.33 million for the fourth quarter that ended on December 31, 2022 (Q4 2022), compared to RM5.16 million in the same quarter the previous year.

This increase can be attributed to higher revenue for its business segments in real estate development, real estate investment, leisure, and hospitality.

The sale of its newest development, BeCentral residences, and of completed residential units, i-Suite and Hyde projects in i-City, as well as the higher occupancy rate attained for the corporate office tower, Mercu Maybank, and the opening of DoubleTree by Hilton Hotel in Q3 2022, all contributed to the revenue increase of 47.82 per cent to RM42.25 million from RM28.58 million in the same quarter last year.

The company's net profit for the entire year increased from RM369,000 to RM26.9 million. When compared to the same period last year, its revenue increased by 49.12 per cent to RM119.62 million from RM80.21 million.

Lim said BeCentral residences as well as the Twenty 8 and 8Premier corporate and retail space, Mercu Maybank (Grade A, Green Building Index), and the Central i-City Mall are expected to contribute to growth.

I-Berhad will continue to generate sales from BeCentral, a project comprising two residential towers with a gross development value (GDV) of RM600 million, in addition to Twenty8 and 8Premier.

BeCentral's Tower 1 has sold around 40 per cent of its 474 units to this point.

According to Lim, the certified Tier-3 data centre, which attained a 100 per cent occupancy rate years ago, has seen an increase in rental rates, while the occupancy rate at Mercu Maybank, with Malayan Banking Bhd as the anchor tenant, has reached 85 per cent.

Central i-City Mall, which is a joint-venture between i-City and Thailand's largest retail developer, Central Pattana, is 90 per cent tenanted with an anticipated 12 million visitors per year.

Lim said moving ahead, the deployment of 5G technology will enable i-City to offer faster internet speeds and seamless connectivity to its tenants and visitors while creating an environment that is conducive to its businesses.

"We are confident that the deployment of 5G technology will provide a significant competitive edge to i-City and further cement our position as a leader in the property investment and real estate development industry," he said.

Public Investment Bank said I-Berhad's core net profit of RM8.2 million for Q4 2022 is slightly behind its estimates at 83 per cent of full-year expectations.

However, the firm is happy to see some momentum emerging due to the stronger recognition of revenues from ongoing projects and inventories.

Analyst Ching Weng Jin said that it is maintaining its FY23/FY24 predictions, while also presenting FY25 numbers.

Ching said the scope for upside is still attractive with about 60 per cent of the i-City project's gross development value yet to be realised.

Unbilled sales continue to build meanwhile, currently at RM87.3 million as of end-Dec (Sep 2022:RM73.6 million).