[%WQKz%] 
Research by RHB
BUY – TP RM 4.45

" Potential Diversification Winner; Maintain BUY”

The plantation industry is at a crossroads, with rising costs, falling yields, and little chance for landbank expansion. Planters are forced to do a lot more to boost their bottomlines – is diversification the key? IOI Corp could be a potential winner, given its stronger R&D division and sizeable landbank. It is currently eyeing suitable areas in two states for renewable energy (RE) development or as a source of rental income. Valuations are attractive at 18x FY25F P/E vs its peer range of 18-22x. 

Analyst:
Hoe Lee Leng
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$KLSE-IOICORP 
Research by RHB
BUY – TP RM 4.45

" Potential Diversification Winner; Maintain BUY”

The plantation industry is at a crossroads, with rising costs, falling yields, and little chance for landbank expansion. Planters are forced to do a lot more to boost their bottomlines – is diversification the key? IOI Corp could be a potential winner, given its stronger R&D division and sizeable landbank. It is currently eyeing suitable areas in two states for renewable energy (RE) development or as a source of rental income. Valuations are attractive at 18x FY25F P/E vs its peer range of 18-22x. 

Analyst:
Hoe Lee Leng
hoe.lee.leng@rhbgroup.com