IOI Corporation Berhad

Date announced 18/11/2010
Quarter 30/09/2010 Qtr 1 FYE 30/06/2011

STOCK IOICorp C0DE  1961 

Price $ 5.9 Curr. ttm-PE 18.05 Curr. DY 2.88%
LFY Div 17.00 DPO ratio 52%
ROE 19.8% PBT Margin 18.8% PAT Margin 14.2%

Rec. qRev 3519260 q-q % chg 15% y-y% chq 7%
Rec qPbt 661746 q-q % chg 7% y-y% chq 6%
Rec. qEps 7.81 q-q % chg -9% y-y% chq -2%
ttm-Eps 32.69 q-q % chg -1% y-y% chq 66%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 17.00 Avg. L PE 11.00
Forecast High Pr 7.09 Forecast Low Pr 5.31 Recent Severe Low Pr 5.31
Current price is at Middle 1/3 of valuation zone.

RISK: Upside 67% Downside 33%
One Year Appreciation Potential 4% Avg. yield 4%
Avg. Total Annual Potential Return (over next 5 years) 8%

CPE/SPE 1.29 P/NTA 3.58 NTA 1.65 SPE 14.00 Rational Pr 4.58



Decision:
Already Owned: Buy, Hold, Sell, Filed; Review (future acq): Filed; Discard: Filed.
Guide: Valuation zones - Lower 1/3 Buy; Mid. 1/3 Maybe; Upper 1/3 Sell.

Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr


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Published: Thursday November 18, 2010 MYT 1:29:00 PM

IOI Corp 1Q net profit up RM19.7 million

PETALING JAYA: IOI Corp Bhd saw its first quarter net profit increase by 4.13% to RM498.13 million from a year ago while pre-tax profit was 6% higher at RM661.7 million due to higher profits from its plantation unit and higher unrealised translation gain on foreign currency denominated borrowings.

The company told Bursa Malaysia on Thursday that it expects satisfactory performance for its present fiscal year due to strong crude palm oil (CPO) prices and a resilient property market.

For the three-month period ended September 30 2010, the plantation segment recorded a 38% gain in operating profit to RM345.3million from a year ago due to higher CPO prices realised and a marginal increase in fresh fruit bunches production.

Average CPO price realised for the first quarter was RM2,598/MT compared to RM2,294/MT from the previous corresponding period.

IOI Corp's first quarter revenue grew by 7.4% to RM3.52 billion.

http://biz.thestar.com.my/news/story.asp?file=/2010/11/18/business/20101118133526&sec=business

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IOI Corp 1QFY2011 net profit up 4.12% to RM498.13m
Written by Surin Murugiah
Thursday, 18 November 2010 13:36

KUALA LUMPUR: IOI CORPORATION BHD [] net profit for the first quarter ended Sept 30, 2010 rose 4.12% to RM498.13 million from RM478.38 million a year ago, due mainly to higher profit contribution from the PLANTATION [] segment and higher unrealised translation gain on foreign currency denominated borrowings.

The company recorded revenue RM3.52 billion for the quarter, compared to RM3.26 billion last year. Earnings per share was 7.81 sen, while net assets per share was RM1.65.

In a filing to Bursa Malaysia on Thursday, Nov 18, IOI Corp said the plantation segment reported a 38% increase in operating profit to RM345.3 million for Q1FY2011 as compared to RM249.8 million for Q1 FY2010.

The higher profit was due mainly to higher CPO prices realised as well as a marginal increase in FFB production, it said.

Average CPO price realised for Q1 FY2011 is RM2,598/MT compared to RM2,294/MT for Q1 FY2010, it said, IOI Corp said its property development and investment segment’s operating profit of RM160.3 million for Q1 FY2011 was in line with Q1 FY2010.

The resource-based manufacturing segment’s operating profit decreased from RM158.9 million in Q1FY2010 to RM40.4 million in Q1 FY2011 due mainly to lower volume and margins and fair value losses on the adoption of FRS 139, it said.

http://www.theedgemalaysia.com/business-news/177288-ioi-corp-1qfy2011-net-profit-up-412-to-rm49813m.html