IOI Corp’s best quarterly results of RM581m net profit

KUALA LUMPUR: IOI Corporation Bhd posted its best quarterly results for the second quarter to Dec 31, 2007, with a net profit of RM581.19 million, driven by record high palm oil prices, increased volume for resource-based manufacturing and higher property sales.

Revenue rose to RM3.46 billion from RM2.24 billion a year ago, while earnings per share was 9.67 sen. IOI Corp has declared a gross interim dividend of 70% or 7 sen per 10 sen share.

For the six-month period, net profit surged 62% to RM1.03 billion from RM638.27 million previously.

Announcing its latest results yesterday, IOI Corp said plantation earnings for 1H08 doubled to RM867.6 million boosted by significantly higher crude palm oil prices.

“Average CPO prices realised for 1H08 areRM2,572 per tonne as compared with RM1,560 for the same period last year,” it said.

On its resourced-based manufacturing segment, the company said operating profit rose by 55% at RM281.8 million with the inclusion of profit from Pan Century Group as well as volume and margin growth from its three sub-segments.

IOI Corp said its property segment registered a 14% increase in operating profit to RM204.7 million compared with RM179.1 a year earlier on demand for high-end residential properties.

Kenanga Investment Bank Bhd analyst Yin Shao Yang said IOI Corp’s results were anticipated, adding that the year-on-year (y-o-y) improvement in all of its segments was commendable.

“The main thrust for its performance was the high CPO price. We are forecasting RM2.1 billion net profit for the full year, but it could surprise us should CPO prices remain at current levels,” he said.

Yin said Kenanga Research forecast CPO prices to average at RM3,100 per tonne in 2008.

Meanwhile, IOI Corp’s property unit IOI Properties Bhd has rewarded its shareholders with a higher gross interim dividend of 70 sen a share after announcing a 26.6% rise in net profit for the second quarter ended Dec 31, 2007 to RM90.9 million from RM71.78 million a year ago, on the back of a 14% increase in revenue to RM191.3 million.

In the previous corresponding period, it paid out 35 sen gross interim dividend.

In a separate statement yesterday, IOI Properties said earnings per share for 2Q was 27.93 sen, while net assets per share stood at RM6.54.

The company said its operating profit from property development activities for the first six months increased by RM21.8 million.

“The group also benefited from higher incidental palm oil revenue from its landbank as well as gain of about RM16.7 million from the disposal of non-current assets held for sale,” it said.

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Kuok still the richest

KUALA LUMPUR: Sugar King Tan Sri Robert Kuok Hock Nien remains the richest Malaysian, ahead by a wide margin from closest rival T. Ananda Krishnan, according to Malaysian Business magazine's list of 40 Richest Malaysians.

The magazine in its Feb 16 issue puts Kuok's wealth at RM58.11bil, which accounts for nearly 36% of the total wealth of the 40 richest.

Tan Sri Robert Kuok Hock Nien

The Hong Kong-based tycoon added a whopping RM25.7bil to his vast fortune last year, due to the higher equity prices of his stable of listed stocks.

It said Ananda Krishnan's fortune however registered a marginal drop to RM19.63bil.

IOI Corp Bhd's Tan Sri Lee Shin Cheng said the magazine, had for the first time put him in the top three of Malaysia's richest by doubling his fortune to RM14.94bil.

Others in the top10 ranking are Tan Sri Quek Leng Chan of Hong Leong Group (RM11.09bil), Tan Sri Syed Mokhtar Albukhary of the Albukhary Foundation (RM8.55bil), Tan Sri Teh Hong Piow of Public Bank group (RM8.06bil), Tan Sri Lim Kok Thay of Genting group (RM3.17bil) and Tan Sri Tiong Hiew King of the Rimbunan Hijau group (RM3.87bil).

The magazine said two tycoons found their way to the Top10 - Tan Sri Vincent Tan of Berjaya group (RM3.41bil) and Tan Sri Azman Hashim of Amcorp group (RM2.87bil).

“They dislodged YTL Corp patriarch Tan Sri Yeoh Tiong Lay who slips to 13th position (RM1.75bil),” it said.

Among the notable new entrants to the list is Singapore-based Ong Beng Seng who, at RM1.74bil, ranks number 14.

The others are Datuk Tony Tiah Thee Kian of TA Enterprise Bhd, Datuk Seri Lau Cho Kun of Gek Poh Holdings, Datuk Lin Yun Ling of Gamuda Bhd, Datuk Seri Liew Kee Sin of SP Setia Bhd and Kwan Ngen Chung of Kwantas Corp Bhd.

The full list of the 40 tycoons and details of their wealth appears in the magazine's Feb 16 issue. Their wealth was assessed based on the value of their stakes in listed companies as at Jan 18, 2008, the magazine said.– Bernama

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IOI Corp earnings surge 52% in Q2

PETALING JAYA: IOI Corp Bhd's net income surged 52% in the second quarter ended Dec 31, as soaring palm oil prices boosted profits from plantation and resource-based manufacturing businesses.

The three-month earnings swelled to a record RM581.2mil, or 9.71 sen per share, compared with RM382.6mil, or 6.25 sen per share, a year earlier.

Revenue jumped to RM3.46bil from RM2.26bil before.

IOI Corp released its latest quarterly results during the market's midday break, reflecting a growing trend among big corporations to announce vital corporate development to investors in a more effective manner.

“The stock is pricey at these levels, but the premium could be justified given its size, trading liquidity and probably because most people consider IOI Corp to be the best proxy for rising palm oil prices,'' a local fund manager said.

Last year, IOI Corp bought its first overseas plantation land in Indonesia and acquired a rival refinery in Johor. Last month, the company announced a plan to raise RM600mil in fresh capital to help fund further expansion.

IOI Corp shares closed 20 sen higher at RM8.15 yesterday on volume of 13.3 million.

The stock hit a record RM8.55 a month ago.

IOI Corp's six-month earnings jumped 62% to RM1.03bil against RM638mil a year earlier.

The company said its palm oil fetched RM2,572 a tonne during the six months, up from RM1,560 a tonne in the year before.

“Barring unforeseen circumstances, all business segments are expected to continue to perform well in FY08,'' it told Bursa Malaysia.

The crude palm oil (CPO) futures on Bursa Derivatives, the global benchmark, had risen 80% over the past one year amid fears the global edible oils market was in short supply to meet growing demand worldwide.

The CPO futures contract for April delivery jumped RM91 to RM3,451 a tonne yesterday, its highest closing price.

“We remain upbeat on CPO price prospects as supply deficits for other edible oils will encourage consumers to switch to palm oil,'' CIMB Investment Bank said in an update on the sector yesterday.

Shares in Kuala Lumpur Kepong Bhd (KLK), the third most valuable plantation stocks behind Sime Darby and IOI Corp, hit a record RM19.20 yesterday, up 60 sen.

KLK is due to announce its first quarter ended Dec 31 results on Feb 20.

In a separate statement, IOI Properties Bhd said it posted a net profit of RM91mil on sales of RM191mil for the second quarter. Its six-month net income surged to RM171mil on turnover of RM396.8mil.

The improved performance was attributed to “higher demand for residential properties”, it said.

IOI Properties proposed a gross interim dividend of 60 sen per share for the period.

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