Monday, November 21, 2011

IOI Corporation: Hold

Hit by steep forex translation losses  Shariah-compliant
 
Core earnings with expectations. IOI’s 1QFY12 net profit of RM258m (-53% QoQ, -48% YoY) included a steep forex translation loss of RM271m (mitigated by net fair valuation gains of RM21m on financial asset & liabilities). Stripping away these accounting losses, core net profit of RM508m (-17% QoQ, +24% YoY) was in line with our and consensus expectations. Maintain Hold on IOI with unchanged TP of RM5.14 based on 16x FY13 PER.


Maybank research (21 November 2011)

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