KUALA LUMPUR: Shares of PLANTATION [] heavyweight IOI Corp fell in late morning on Thursday, Feb 17 after its earnings for the first half ended Dec 31, 2010 came in below analysts' expectations.
At 10.49am, IOI Corp was down eight sen to RM5.63.
The FBM KLCI rose 4.92 points to 1,511.22. Turnover was 542.56 million shares valued at RM360.25 million. There were 273 gainers, 282 losers and 280 stocks unchanged.
OSK Research'' said IOI Corp's annualised 1HFY11 core net profit of RM920.5 million was 11.3% below its recently raised forecast of RM2074.7 million and 16.5% below consensus expectation.
'If we knock off the RM61 million one-off gain from the disposal of investment property, the core number would have been worse,' it said on Thursday, Feb 17.
'We are maintaining our Sell call on IOI Corp with our target price remaining at the recently downgraded RM4.41. Based on our CPO price assumption of RM3,200 for CY11, IOI is trading in excess of 19x earnings. Its stretched valuation has resulted in sub-par stock price performance and we believe this will continue to be the case in the foreseeable future until the company gets more aggressive with its new planting,' it added.
At 10.49am, IOI Corp was down eight sen to RM5.63.
The FBM KLCI rose 4.92 points to 1,511.22. Turnover was 542.56 million shares valued at RM360.25 million. There were 273 gainers, 282 losers and 280 stocks unchanged.
OSK Research'' said IOI Corp's annualised 1HFY11 core net profit of RM920.5 million was 11.3% below its recently raised forecast of RM2074.7 million and 16.5% below consensus expectation.
'If we knock off the RM61 million one-off gain from the disposal of investment property, the core number would have been worse,' it said on Thursday, Feb 17.
'We are maintaining our Sell call on IOI Corp with our target price remaining at the recently downgraded RM4.41. Based on our CPO price assumption of RM3,200 for CY11, IOI is trading in excess of 19x earnings. Its stretched valuation has resulted in sub-par stock price performance and we believe this will continue to be the case in the foreseeable future until the company gets more aggressive with its new planting,' it added.
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