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

• 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