IOICorp registered a bullish candle after congesting near RM5.60. The share price of IOICorp hit a stumbling block near RM5.60 in Mar 2010, after rallying for more than 16 months from a low near RM1.98. As it failed to penetrate the key RM5.60 hurdle, it turned into a sideways consolidation within a wide trading range from RM4.85 to RM5.60 thereafter. However, the share price has been trading on an uptrend lately, and the stock hit a high of RM5.65 recently. Following some congestion near RM5.60, it recorded a bullish candle and closed at RM5.58 on Monday.
Mandarin Version - IOI Corporation Berhad : A Possible Breakout Rally Ahead…-12/10/2010
Showing posts with label IOI Corporation. Show all posts
Showing posts with label IOI Corporation. Show all posts
Tuesday, October 12, 2010
IOI Corporation Berhad : A Possible Breakout Rally Ahead… - 12/10/2010
IOICorp registered a bullish candle after congesting near RM5.60. The share price of IOICorp hit a stumbling block near RM5.60 in Mar 2010, after rallying for more than 16 months from a low near RM1.98. As it failed to penetrate the key RM5.60 hurdle, it turned into a sideways consolidation within a wide trading range from RM4.85 to RM5.60 thereafter. However, the share price has been trading on an uptrend lately, and the stock hit a high of RM5.65 recently. Following some congestion near RM5.60, it recorded a bullish candle and closed at RM5.58 on Monday.
IOI Corporation Berhad : A Possible Breakout Rally Ahead…-12/10/2010
IOI Corporation Berhad : A Possible Breakout Rally Ahead…-12/10/2010
RHB Equity 360° - 12 October 2010 (Plantation, Globetronics; Technical: Kulim, IOI, Sime, Genting Plant, CPO)
Sector Update
- Malaysia’s CPO production fell in Sep by 2.7% mom, while exports rose by a significant 21.2% mom. Despite the significant jump in exports, the lower production, slightly higher imports and lower domestic use caused closing CPO stock levels to remain relatively flat at 1.708m tonnes in Sep (from 1.704m tonnes in
Aug). As a result of the flat CPO stock levels, stock/usage ratio in Sep was also relatively flat at 9.18% (from 9.12% in Aug), in line with the 7-year average of 9.1%.
RHB Equity 360° - 12 October 2010 (Plantation, Globetronics; Technical: Kulim, IOI, Sime, Genting Plant, CPO)
- Malaysia’s CPO production fell in Sep by 2.7% mom, while exports rose by a significant 21.2% mom. Despite the significant jump in exports, the lower production, slightly higher imports and lower domestic use caused closing CPO stock levels to remain relatively flat at 1.708m tonnes in Sep (from 1.704m tonnes in
Aug). As a result of the flat CPO stock levels, stock/usage ratio in Sep was also relatively flat at 9.18% (from 9.12% in Aug), in line with the 7-year average of 9.1%.
RHB Equity 360° - 12 October 2010 (Plantation, Globetronics; Technical: Kulim, IOI, Sime, Genting Plant, CPO)
Friday, September 17, 2010
RHB Equity 360° - 17 September 2010 (Evergreen, Power, HSL, Petra Perdana; Technical: IOI)
Top Story : Evergreen – Promising outlook, attractive dividend yield Outperform
Visit Note
- In 2Q10, Evergreen achieved a capacity utilisation rate (inclusive of Indonesia capacity) of 82%, up from 1Q10’s 77%. Raw material costs were also lower, and this was mainly due to the qoq fall in rubberwood and glue prices by 5.9% and 2.7% respectively. Management expects rubberwood log and glue prices to increase slightly in 2H10.
RHB Equity 360° - 17 September 2010 (Evergreen, Power, HSL, Petra Perdana; Technical: IOI)
Visit Note
- In 2Q10, Evergreen achieved a capacity utilisation rate (inclusive of Indonesia capacity) of 82%, up from 1Q10’s 77%. Raw material costs were also lower, and this was mainly due to the qoq fall in rubberwood and glue prices by 5.9% and 2.7% respectively. Management expects rubberwood log and glue prices to increase slightly in 2H10.
RHB Equity 360° - 17 September 2010 (Evergreen, Power, HSL, Petra Perdana; Technical: IOI)
Wednesday, August 25, 2010
IOI Corporation Berhad : Prospects Looking Better For FY11 - 25/08/2010
•In line with ours, but below consensus. IOIC’s FY06/10 earnings ex-EI was in line with our forecast, coming in at 95.1% of our FY10 projection, but below consensus expectations, coming in at 90.2% of consensus forecast. IOIC recorded an EI gain of RM395.8m on translation of its US$-debt for FY10. IOIC declared a final net DPS of 10 sen (4QFY09: 2 sen), bringing FY10 net DPS to 17 sen (FY09: 8 sen), or a net payout of 51.6%, higher than our projected 45%. This translates to net yield of 3.2%.
IOI Corporation Berhad : Prospects Looking Better For FY11 - 25/08/2010
IOI Corporation Berhad : Prospects Looking Better For FY11 - 25/08/2010
Tuesday, July 6, 2010
Corporate Highlights - 6/7/2010
♦ Kossan Rubber Industries
Visit Note : Demand For Gloves Still Firm
♦ IOI Corporation
News Update : Disposes Of Land For RM53.5m
♦ Mah Sing
News Update : To Take Over A Mahajaya’s Project In Kinrara
Corporate Highlights - 6/7/2010
Visit Note : Demand For Gloves Still Firm
♦ IOI Corporation
News Update : Disposes Of Land For RM53.5m
♦ Mah Sing
News Update : To Take Over A Mahajaya’s Project In Kinrara
Corporate Highlights - 6/7/2010
IOI Corporation Berhad : Disposes Of Land For RM53.5m - 6/7/2010
Disposes of land for RM53.5m. IOIC’s 99.7%-owned subsidiary, IOI Properties has disposed of a company, Paduwan Development Sdn Bhd (PDSB) for RM53.5m (inclusive of settlement of IOIP's loan) to Starwatt Engineering Sdn Bhd. PDSB's principal asset is an agricultural land planted with oil palm measuring 535.45 acres (217 hectares) situated at Mukim of Krubong, District of Melaka Tengah, State of Melaka.
IOI Corporation Berhad : Disposes Of Land For RM53.5m - 6/7/2010
IOI Corporation Berhad : Disposes Of Land For RM53.5m - 6/7/2010
RHB Equity 360° - 6 July 2010 (Kossan, IOIC, Faber, Mah Sing; Technical: Supermax)
- Management is still positive on the demand for gloves and expects it to remain firm moving forward. Currently, Kossan’s average utilisation rate stands at approximately 90% and this has been rather consistent over the past few years despite the increase in production capacity.
- The capacity expansion at its new factory in Jalan Meru is ongoing, and upon completion, this new factory will house a total of 32 double-former lines. This factory currently houses 8 double-former lines, which will start commercial production in Sep’10. All-in, Kossan’s annual production capacity would increase by 20.8% from 12bn pieces currently to 14.5bn pieces by end-2010 and further by 3.5% in 2011 to 15bn pieces.
RHB Equity 360° - 6 July 2010 (Kossan, IOIC, Faber, Mah Sing; Technical: Supermax)
- The capacity expansion at its new factory in Jalan Meru is ongoing, and upon completion, this new factory will house a total of 32 double-former lines. This factory currently houses 8 double-former lines, which will start commercial production in Sep’10. All-in, Kossan’s annual production capacity would increase by 20.8% from 12bn pieces currently to 14.5bn pieces by end-2010 and further by 3.5% in 2011 to 15bn pieces.
RHB Equity 360° - 6 July 2010 (Kossan, IOIC, Faber, Mah Sing; Technical: Supermax)
Thursday, May 20, 2010
RHB Equity 360° - 20 May 2010 (Notion Vtec, Kencana, Media Prima, Amway; Technical: IOI, FBM KLCI)
Visit Note
♦ Construction work on its new 150k sq ft plant is set to commence production by Sep-10. Note that management expects capex of around RM80m to ramp up the base plate capacity to 1m/month, 5m/month, and 7m/month by FY10-12 respectively from 350-400k/month (currently) vs. 100k/month in Jan-10.
♦ Also, the company expects stronger volume loading in 2H2010 from WD on the back of strong demand for HDD components. Recall that WD overtook Seagate as the No. 1 HDD vendor in 1Q10. WD now expects to increase its total HDD shipments by more than 20%. While currently capacities for these components are 800-900k/month, management is expecting to increase capacity to 1.5-2.0m/month by end-2010.
♦ In the anticipation of higher costs this year stemming from higher start-up costs and product testing, we have trimmed our FY10 net profit forecast by 4.3% to RM53.6m. However, given stronger volume loading as well as lower cost stemming from tight cost control and higher utilisation rate, we have tweaked upwards our FY11-12 net profit by 0.8% respectively.
♦ Separately, assuming completion of the proposed 10% placement and rights issue of free warrants, we estimate FY11 fully-diluted EPS of 38.5 sen, i.e. a dilution of 17.7% from our current forecast, while our fair value would fall to RM3.85. Nevertheless, this would still imply 41% upside from current levels.
♦ After revision in earnings, our fair value is raised to RM4.68 from RM4.64. Maintain Outperform.
RHB Equity 360° - 20 May 2010 (Notion Vtec, Kencana, Media Prima, Amway; Technical: IOI, FBM KLCI)
♦ Construction work on its new 150k sq ft plant is set to commence production by Sep-10. Note that management expects capex of around RM80m to ramp up the base plate capacity to 1m/month, 5m/month, and 7m/month by FY10-12 respectively from 350-400k/month (currently) vs. 100k/month in Jan-10.
♦ Also, the company expects stronger volume loading in 2H2010 from WD on the back of strong demand for HDD components. Recall that WD overtook Seagate as the No. 1 HDD vendor in 1Q10. WD now expects to increase its total HDD shipments by more than 20%. While currently capacities for these components are 800-900k/month, management is expecting to increase capacity to 1.5-2.0m/month by end-2010.
♦ In the anticipation of higher costs this year stemming from higher start-up costs and product testing, we have trimmed our FY10 net profit forecast by 4.3% to RM53.6m. However, given stronger volume loading as well as lower cost stemming from tight cost control and higher utilisation rate, we have tweaked upwards our FY11-12 net profit by 0.8% respectively.
♦ Separately, assuming completion of the proposed 10% placement and rights issue of free warrants, we estimate FY11 fully-diluted EPS of 38.5 sen, i.e. a dilution of 17.7% from our current forecast, while our fair value would fall to RM3.85. Nevertheless, this would still imply 41% upside from current levels.
♦ After revision in earnings, our fair value is raised to RM4.68 from RM4.64. Maintain Outperform.
RHB Equity 360° - 20 May 2010 (Notion Vtec, Kencana, Media Prima, Amway; Technical: IOI, FBM KLCI)
Monday, May 17, 2010
Corporate Highlights - 17/5/2010
♦ Kossan Rubber Industries
Results Preview : Expecting Low Double-Digit YoY Revenue And Earnings Growth For 1Q10
♦ IOI Corporation
Results Note : Banking On Manufacturing And Property
♦ CIMB
News Update : Streamlining CIMB Niaga’s Shareholding Structure
♦ AMMB
Results / Briefing Note : FY10 Net Profit Reaches RM1bn
Corporate Highlights - 17/5/2010
Results Preview : Expecting Low Double-Digit YoY Revenue And Earnings Growth For 1Q10
♦ IOI Corporation
Results Note : Banking On Manufacturing And Property
♦ CIMB
News Update : Streamlining CIMB Niaga’s Shareholding Structure
♦ AMMB
Results / Briefing Note : FY10 Net Profit Reaches RM1bn
Corporate Highlights - 17/5/2010
IOI Corporation Berhad : Banking On Manufacturing And Property - 17/5/2010
Below expectations. IOIC’s 9MFY06/10 earnings ex-EI was below our and consensus expectations, at 61.6-62.5% of our and consensus full-year forecasts (ex-EI). IOIC recorded an EI gain of RM360.9m on translation of its US$-debt. We believe the main variances were: (1) slightly lower-thanexpected average CPO price achieved of RM2,508/tonne in 3QFY10 (versus spot price of RM2,570); (2) higher-than-expected unallocated expenses; and (3) higher-than-expected minority interest. No dividend was declared in the quarter.
IOI Corporation Berhad : Banking On Manufacturing And Property - 17/5/2010
IOI Corporation Berhad : Banking On Manufacturing And Property - 17/5/2010
RHB Equity 360° - 17 May 2010 (Kossan, CIMB, AMMB, IOI, ILB, Wellcall; Technical: Sime, Pos)
Results Preview
♦ Kossan is due to announce its 1QFY10 results later this week. We expect Kossan to post low double-digit yoy revenue and net profit growth due to a combination of: 1) higher volume sales for the glove segment; 2) improved demand for its TRP products as a result from the economic recovery; and 3) margin expansion due to the improvement in sales mix as more higher value gloves were sold during the quarter.
♦ Qoq, we expect high single digit revenue growth to be achieved mainly on the back of:
1) upward adjustments to selling prices to pass on higher raw material cost, offset by the weakening of US$ against RM; and
2) stronger demand for TRP segment due to economic recovery. 1Q10 core earnings, however, could possibly remain flat qoq due to lower margins resulting from the usual time lag in passing on higher raw material prices and weakening US$, partly offset by stronger performance from TRP segment.
♦ Capacity expansion at its new factory in Jalan Meru is ongoing, and upon completion, this new factory will house a total of 32 double former lines. This factory currently houses 8 double-former lines, which started commercial production in Oct’09 while another 8 double-former lines are expected to start commercial production in 3Q2010. The remaining 16 double-former lines are expected to start commercial production
by 2Q2011. In total, Kossan’s annual production capacity would increase from 12bn pieces currently to 14.5bn pieces by end-2010 and 18 bn pieces by end-2011.
♦ Maintain forecasts, fair value of RM10.74 (based on target CY10 PER of 13x) and Outperform call.
RHB Equity 360° - 17 May 2010 (Kossan, CIMB, AMMB, IOI, ILB, Wellcall; Technical: Sime, Pos)
♦ Kossan is due to announce its 1QFY10 results later this week. We expect Kossan to post low double-digit yoy revenue and net profit growth due to a combination of: 1) higher volume sales for the glove segment; 2) improved demand for its TRP products as a result from the economic recovery; and 3) margin expansion due to the improvement in sales mix as more higher value gloves were sold during the quarter.
♦ Qoq, we expect high single digit revenue growth to be achieved mainly on the back of:
1) upward adjustments to selling prices to pass on higher raw material cost, offset by the weakening of US$ against RM; and
2) stronger demand for TRP segment due to economic recovery. 1Q10 core earnings, however, could possibly remain flat qoq due to lower margins resulting from the usual time lag in passing on higher raw material prices and weakening US$, partly offset by stronger performance from TRP segment.
♦ Capacity expansion at its new factory in Jalan Meru is ongoing, and upon completion, this new factory will house a total of 32 double former lines. This factory currently houses 8 double-former lines, which started commercial production in Oct’09 while another 8 double-former lines are expected to start commercial production in 3Q2010. The remaining 16 double-former lines are expected to start commercial production
by 2Q2011. In total, Kossan’s annual production capacity would increase from 12bn pieces currently to 14.5bn pieces by end-2010 and 18 bn pieces by end-2011.
♦ Maintain forecasts, fair value of RM10.74 (based on target CY10 PER of 13x) and Outperform call.
RHB Equity 360° - 17 May 2010 (Kossan, CIMB, AMMB, IOI, ILB, Wellcall; Technical: Sime, Pos)
Wednesday, May 5, 2010
Corporate Highlights - 5/5/2010
♦ IOI Corporation
Visit Note : Good News From Property Division
♦ Digi.Com
Results / Briefing Note : Better Visibility On Future Dividends
Corporate Highlights - 5/5/2010
Visit Note : Good News From Property Division
♦ Digi.Com
Results / Briefing Note : Better Visibility On Future Dividends
Corporate Highlights - 5/5/2010
IOI Corporation Berhad : Good News From Property Division - 5/5/2010
Six key takeaways. These include:
(1) FFB production weaker than expected;
(2) landbank planting progress on target;
(3) positive CPO price view;
(4) cost of production flat;
(5) manufacturing operations running at high utilisation rates, expansion completed; and
(6) good news from the property division – in both Malaysia and Singapore.
IOI Corporation Berhad : Good News From Property Division - 5/5/2010
(1) FFB production weaker than expected;
(2) landbank planting progress on target;
(3) positive CPO price view;
(4) cost of production flat;
(5) manufacturing operations running at high utilisation rates, expansion completed; and
(6) good news from the property division – in both Malaysia and Singapore.
IOI Corporation Berhad : Good News From Property Division - 5/5/2010
RHB Equity 360° - 5 May 2010 (IOI, Digi, Sime Darby; Technical: Unisem)
Top Story : IOI Corp – Good news from property division
Visit Note
♦ Six key takeaways:
(1) FFB production weaker-than-expected;
(2) landbank planting progress on target;
(3) positive CPO price view;
(4) cost of production flat;
(5) manufacturing operations running at high utilisation rates, expansion completed; and
(6) good news from property division – in both Malaysia and Singapore.
♦ Despite weaker-than-expected FFB production caused by the dry weather in the first two months of the year, tree stress in its estates in Peninsular Malaysia, as well as mild labour shortage problems, which saw IOIC’s FFB production in 3QFY06/10 production falling 6.4% yoy, thus resulting in a YTD 9MFY06/10 FFB production decline of 9.1% yoy, we are more positive on IOIC’s earnings prospects after our recent visit. This is due to good news in the property development division, which is expected to see a 71% yoy rise in operating profits in FY10, on the back of recovery in the property markets in Malaysia as well as Singapore.
♦ All in, we have raised our forecasts by 2.9-13.6% for FY10-12. Post-earnings revision and after raising our target PE for property to 14x CY10 (from 13.5x previously) to be in line with the recently raised target PE for the sector, we have raised our SOP-based target price to RM6.85 (from RM6.65). Maintain Outperform.
RHB Equity 360° - 5 May 2010 (IOI, Digi, Sime Darby; Technical: Unisem)
Visit Note
♦ Six key takeaways:
(1) FFB production weaker-than-expected;
(2) landbank planting progress on target;
(3) positive CPO price view;
(4) cost of production flat;
(5) manufacturing operations running at high utilisation rates, expansion completed; and
(6) good news from property division – in both Malaysia and Singapore.
♦ Despite weaker-than-expected FFB production caused by the dry weather in the first two months of the year, tree stress in its estates in Peninsular Malaysia, as well as mild labour shortage problems, which saw IOIC’s FFB production in 3QFY06/10 production falling 6.4% yoy, thus resulting in a YTD 9MFY06/10 FFB production decline of 9.1% yoy, we are more positive on IOIC’s earnings prospects after our recent visit. This is due to good news in the property development division, which is expected to see a 71% yoy rise in operating profits in FY10, on the back of recovery in the property markets in Malaysia as well as Singapore.
♦ All in, we have raised our forecasts by 2.9-13.6% for FY10-12. Post-earnings revision and after raising our target PE for property to 14x CY10 (from 13.5x previously) to be in line with the recently raised target PE for the sector, we have raised our SOP-based target price to RM6.85 (from RM6.65). Maintain Outperform.
RHB Equity 360° - 5 May 2010 (IOI, Digi, Sime Darby; Technical: Unisem)