IOI Corp berhad / Lee Shin Cheng

[winston]

Not vested

Valuation/Recommendationï‚·

Maintain SELL with target price of RM5.24 based on 15x FY12F EPS, in line with big plantation peers and at mid-cycle valuation.

We are concerned over its declining FFB yield and past-prime acreage is also due for replanting soon, which would affect production and bottom line.

http://research.uobkayhian.com/content_ ... 5a675188e8

Source: UOBKH

[winston]

not vested

IOI’s target price revised to RM4.68
26 May 2014

IOI Corp Bhd’s stock has had its “neutral” rating reaffirmed by MIDF Research with a revised target price of RM4.68, derived from sum-of-part valuations.

This came after IOI posted relatively flat revenue for the third quarter of its financial year 2014 at RM2.9 billion and lower revenue for the nine-month period at RM9.1 billion.

MIDF Research said despite flattish revenue growth, IOI’s net profit in the third quarter and the cumulative nine-month period increased significantly to RM2.2 billion and RM3 billion respectively.

Since July 2013 to March 2014, IOI’s fresh fruit bunches production (FFB) has declined by negative 1.3 per cent year-on-year to 2.68 million tonnes.

“We believe the decline in FFB production was partly due to extreme weather conditions during that period,” it said in a note yesterday.

MIDF Reserach expects crude palm oil production to rebound by at least positive seven per cent, supported by more mature acreage from IOI’s Indonesian operations next year.


Source: NST

[winston]

not vested

EPF sells nearly 8m IOI Corp shares

KUALA LUMPUR: The Employees Provident Fund (EPF) Board took the opportunity to take profit in plantation heavyweight IOI Corporation on Nov 27 to dispose of 7.86 million shares.

A filing with Bursa Malaysia on Wednesday showed that after disposal of the shares, the EPF's total stake was reduced to 568.61 million shares or 9.03%.

IOI Corp’s share price rose to a month high of RM4.46 on Nov 27 but closed at RM4.46 on that day due to profit taking.

IOI Corp share price closed three sen lower at RM4.29 at midday on Wednesday.

Source: The Star

[winston]

not vested

HLIB raises IOI Corp target price to RM4.13

Rating: Hold (maintained)
Target price: RM4.13

WHILE the Roundtable on Sustainable Palm Oil (RSPO) has lifted its four-month certification suspension on IOI Corp, it will take a while before the group regains some of the business and margins lost during the period, said HLIB Research.

The research house cut its FY17-18 earnings forecasts by 11.2% and 6.3% respectively, largely to account for higher CPO production cost, and a lower EBIT margin assumption at the manufacturing division.

It also revised its earnings forecast downward by 7%-18% for FY16 to FY17 to factor in the lower FFB production forecast.

During the suspension, about 26 consumers including big names such as Kellogg, Unilever and Mars had cancelled new orders, while commodity traders Bunge and Cargill had announced that they would halt from signing new contracts with IOI Group.

The RSPO withdrew IOI’s “sustainability certification” in April following complaints against PT Sukses Karya Sawit, PT Berkat Nabati Sawit, PT Bumi Sawit Sejahtera, all subsidiaries of IOI Corp.

Despite the downward revision in its earnings forecasts, HLIB Research said it raised its sum of parts-derived target price by 3.3% to RM4.13.

This, it said was it tweaked its target price-earnings ratio for the manufacturing division higher, to 15x from 12x previously, following the lifting of RSPO certification suspension, which more than offsets the impact from the lower earnings forecasts.

Source: HongLeong Investment Bhd

[winston]

TAN SRI LEE SHIN CHENG
Flagship: IOI Group
Net worth: RM19bil

THE man who made his fortune by whispering to the trees on the vast tracts of oil palm plantations, has made more corporate moves in the property market than the oil palm business.

Last year, the 78-year-old Lee saw the IOI group’s property arm – IOI Properties Group Bhd (IOI Prop) – undertake two major investments abroad.

The first was the acquisition of a 6.2-acre parcel in Xiamen, China, for 2.3 billion yuan (RM1.4bil) in August. The second was the acquisition of a 1.09ha plot of land in Singapore’s Marina Bay for S$2.59bil (RM7.8bil).

Both parcels were purchased through competitive tenders. However, IOI Prop’s purchase of the land in Singapore raised eyebrows because it set a new record.

IOI Prop paid an equivalent of S$1,689 per sq ft for the land in Marina Bay, topping the previous record of S$1,409 paid by a Qatar fund in 2007 for a parcel in the same location.

The question that has always been asked about IOI Prop’s ventures abroad is whether the group has been able to make money from its projects, as the land acquisitions were at the high-end of the band.

This is because the group’s first major property venture abroad – in Singapore in 2008 – has not had much of a success due to bad timing.

The global financial crisis came just after IOI Prop purchased a parcel of land for development in Sentosa Island.

The group said that it has been able to make money from its ventures in Singapore, and that the units built in the Sentosa Island project are now only available for rent.

Lee’s worth has increased mainly due to IOI Prop’s market capitalisation.

However, this year, considering that crude palm oil prices are on the rise, his value should come from his plantations business that is the mainstay of the group.

Source: The Star

[winston]

not vested

IOI Corporation (IOI MK)
3QFY22: Results Above Expectations

IOI’s 3QFY22 results came in above expectations, as we have not factored in the higher
CPO selling price for its upstream operations.

We expect earnings to be better qoq in 4QFY22 on the back of better CPO ASP, higher sales volume and better refining margin.

IOI is likely to benefit from changes in Indonesia’s policy which limits exports from
Indonesia.

Maintain BUY with a higher target price of RM5.45, factoring in higher CPO
ASP and higher fair value for its associate, Bumitama.

Source: UOBKH

https://research.uobkayhian.com/content ... 356dfeb9a8

[winston]

not vested

3QFY22 missed expectations on forward sales done earlier

Expect better earnings delivery in 4QFY22

3QFY22 core PATMI missed our/ consensus expectations mainly on lower than-expected CPO ASP achieved and higher-than-expected taxes.

We expect 4QFY22 to be better QoQ driven mainly by stronger upstream earnings (on higher output and ASP).

Following our EPS revisions, IOI remains a BUY with unchanged TP of MYR4.87 on 22x CY23E EPS, at -1SD of 5Y mean.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/262855.pdf