IOI Corp poised to record stronger earnings in H2

Kenanga Research also raised its FY21-22 earnings forecasts for IOI by 8% on higher CPO prices.

PETALING JAYA: IOI Corp Bhd is expected to post robust earnings for the second half of its financial year ending June 30,2021, driven by its plantation segment on rising crude palm oil (CPO) prices.

Following a strong performance for first half by the diversified conglomerate, with its net profit rising 75% year-on-year (y-o-y) to RM633.6mil, analysts expected the momentum to continue into the remaining six months and raise their earnings forecasts for the group.Maybank Investment Bank (MaybankIB) Research revised its earnings forecasts for FY21-22 by 1% and 2%, respectively.

This was based on the brokerage’s higher forecasts of average CPO prices for 2021-22 at RM2,700 and RM2,600 per tonne, compared with its previous forecast of RM2,500 per tonne for both years.