PETALING JAYA: IOI Corp Bhd
is expected to deliver stronger earnings in the coming financial years as it benefits from elevated crude palm oil (CPO) prices while pursuing fresh income streams through new ventures and mergers and acquisitions. The group is also targeting fresh fruit bunches (FFB) output growth and cost containment measures that could support margins going forward.
According to RHB Research, which met with IOI Corp’s management recently, the outlook remains positive as upstream earnings will continue doing well on strong CPO prices. This is further supported by the group’s embarking on new ventures to diversify its income streams. The brokerage said the group’s valuation was still appealing, trading at 17.5 times its forecast price-earnings ratio for 2026, at the lower end of the 17 to 22 times range of peers.
