Bursa Malaysia Stock Watch

IOI Corporation: Maintain Hold - FY6/12 Results to Disappoint?

kltrader
Publish date: Thu, 23 Aug 2012, 09:50 AM
kltrader
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  • Core results to disappoint? IOI is likely to miss our and consensus' FY6/12 core net profit estimates of MYR2b, now expected to come in below MYR1.87b (-7% YoY), dragged by low FFB output in 4QFY6/12.
  • The 4QFY6/12 bottom line could also be impacted by heavy forex translation losses, offset by fair value gain on investment properties (4QFY6/11: +MYR111m) and a revaluation surplus on its 30%-owned investment in Bumitama (BAL SP, Not Rated).
  • For now, we maintain our earnings forecasts, HOLD call and MYR5.38 TP (16x CY13 PER).
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Source: Maybank Research - 23 August 2012
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