KUALA LUMPUR, Aug 25 — Share price of IOI Corp Bhd climbed 2.1 per cent after announcing solid results for the financial year ended June 30, 2021 (FY2021)
At 12.30pm, the counter rose eight sen to RM3.97 with 2.2 million units transacted.
Yesterday, the oil palm plantation company announced that its net profit for FY2021 surged to RM1.39 billion from RM600.90 million in the same period last year.
Revenue increased to RM11.25 billion from RM7.8 billion previously, with the better performance attributed to higher contributions from all segments.
CGS-CIMB said it is maintaining a ‘hold’ call on IOI, with a higher target price (TP) of RM4.01.
It is expecting IOI’s plantation division to perform well in the first half of FY2022 (H1FY2022), as CPO prices are anticipated to remain strong.
“Overall, the group expects to perform better in FY2022, in line with our forecast of 10 per cent growth in FY2022’s core net profit,” said the research house.
CGS-CIMB said key upside risks are higher CPO prices and earnings-accretive mergers and acquisitions.
“Downside risks are lower fresh fruit bunches (FFB) yield due to worker shortage and weaker downstream margins,” it said.
IOI achieved average crude palm oil (CPO) price of RM3,076 per tonne in FY2021, higher than the RM2,900 expected by the research house. — Bernama
