[%DWIj%] IOI Corporation 
Research by HLIB
HOLD ; Target Price: RM3.84 ;  upside -9.2% 

"Within our expectations"
IOI’s FY19 core net profit of RM710.5m (-34.6%) came in within our expectation, accounting for 99.3% of our forecast. Against market consensus, the results came in below estimates, accounting for only 87.4%. Proposed final DPS of 4.5 sen, bringing total DPS for FY19 to 8 sen. FY19 core net profit fell by 34.6% to RM710.5m, as improved earnings at manufacturing segment was more than offset by a 3.3% decline in FFB output (arising from higher replanting rate at its Sabah operations) and sharply lower palm product prices. We maintain our SOP-derived TP of RM3.84, but upgrade our rating to HOLD (from Sell previously), as valuations have become more compelling following recent share price retracement. 

Chye Wen Fei
[%zfUo%]
(603) 2083 1712 

$KLSE-IOICORP IOI Corporation 
Research by HLIB
HOLD ; Target Price: RM3.84 ;  upside -9.2% 

"Within our expectations"
IOI’s FY19 core net profit of RM710.5m (-34.6%) came in within our expectation, accounting for 99.3% of our forecast. Against market consensus, the results came in below estimates, accounting for only 87.4%. Proposed final DPS of 4.5 sen, bringing total DPS for FY19 to 8 sen. FY19 core net profit fell by 34.6% to RM710.5m, as improved earnings at manufacturing segment was more than offset by a 3.3% decline in FFB output (arising from higher replanting rate at its Sabah operations) and sharply lower palm product prices. We maintain our SOP-derived TP of RM3.84, but upgrade our rating to HOLD (from Sell previously), as valuations have become more compelling following recent share price retracement. 

Chye Wen Fei
wfchye@hlib.hongleong.com.my
(603) 2083 1712 