[%rUKr%]
Research by HLIB
BUY  – TP RM4.22

"Better prospects in FY25”

Key highlights from IOI’s virtual post-results briefing include (i) decent FFB output growth to sustain into FY25 on the back of continuing yield improvement, (ii) CPO production cost to decline further in FY25 (albeit at a slower pace vs. FY24), (iii) performance at manufacturing segment will continue to improve into 1HFY25, supported mainly be improving performance at oleochemical sub-segment, and (iv) higher capex guidance in FY25 (RM700- 800m vs. RM660m in FY24). Maintain earnings forecasts, TP of RM4.22 (based on 20x CY2025 core EPS of 21.1 sen), and BUY rating.

Analyst:
Chye Wen Fei
[%tlAs%]

$KLSE-IOICORP
Research by HLIB
BUY  – TP RM4.22

"Better prospects in FY25”

Key highlights from IOI’s virtual post-results briefing include (i) decent FFB output growth to sustain into FY25 on the back of continuing yield improvement, (ii) CPO production cost to decline further in FY25 (albeit at a slower pace vs. FY24), (iii) performance at manufacturing segment will continue to improve into 1HFY25, supported mainly be improving performance at oleochemical sub-segment, and (iv) higher capex guidance in FY25 (RM700- 800m vs. RM660m in FY24). Maintain earnings forecasts, TP of RM4.22 (based on 20x CY2025 core EPS of 21.1 sen), and BUY rating.

Analyst:
Chye Wen Fei
wfchye@hlib.hongleong.com.my