Wednesday, May 18, 2011

IOI Corp gains after 3Q net profit rises 19.6% to RM656.71m

KUALA LUMPIR: IOI CORPORATION BHD [] shares rose on Wednesday, May 18 after its net profit for the third quarter ended March 31, 2011 rose 19.6% to RM656.71 million from the RM549.02 million a year ago, boosted by the better overall performance of the group, especially PLANTATION []s.

At 9.45am, IOI Corp rose five sen to RM5.24 with 479,000 shares traded.

Its 3QFY11 pre-tax profit of RM780.86 million was 10% higher than the RM709.27 million a year ago. Revenue rose 37.7% to RM4.34 billion from RM3.15 billion while earnings per share were 10.25 sen versus 8.6 sen.

For the nine-months ended March 31, 2011 (9MFY11), it said net profit was RM1.74 billion compared with RM1.52 billion a year ago. Revenue was higher at RM11.83 billion versus RM9.48 billion.

MIDF Research maintained its Buy call on IOI Corp with target price of RM6.24.

'We employ sum-of-parts valuation to set our target price for IOI Corp. We peg our valuation to FY12 earnings and set our target price at RM6.24.

'We reiterate our Buy call for IOI Corp and believe that its future earnings growth will be supported by steady growth of FFB and CPO,' it said on May 18.

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