Ioi Corporation

IOI Corpo balancen Case lease 1. IOI strong growth was achieved through a. legal plantation management practice * Continues returnss on yields performance * Maximize output from plantation and factories and minimize input to achieve a low-cost supply chain b. diversify business base in treat oil industry, from downstream sector to upstream sector 2. IOI opportunities and threats c. Opportunity * Continues growth on medal oil in nourishment oils & fats grocery store globally * add-on in non-food industry demand, like biofuel.Now, food market is focus on renewable energy. typewriter ribbon oil has been identified as oneness of the efficient and clean biofuel * Crude palm oil price getting high and stable grade-on-year. * gross revenue of properties at flush ara especially in capital of Singapore have been encouraging * Expansion in Indonesia with recent planting permit praise to the groups directly own plantations d. Threat * Major revenue is be intimate from expor t markets to Europe and US. Weak frugal situation affect the demand on palm oil. With limited land imprecate in Malaysia * Unfavorable weather considerateness * Shortage of estate workers * Fierce rivalry from Sime Darby and Indonesia and upcoming markets like Africa and Brazil atomic number 18 catching up 3. Internal makeup capabilities and it weakness. e. Top 3 executive directors are family members. Decisions making are among family members, higher chances in power abusing and insufficiency of transparency f. Has trading trading ope dimensionns in many countries, expose to exotic exchange risk 4. Change and unaltered g. Change Family based appropriate holders lack of transparency. Need to maintain good race with stakeholders to increase the efficiency of the group h. unvaried * Tissue culture research, leading to refinement of clonal palms with superior traits * Continuous improvement in productivity and efficiency of its operations * Sustainable environmental friend ly practices IOI pecuniary Analysis FY2012 1. Current liquidity ratio = Current asset / Current obligation 2012 (RM000) 2011 (RM000) 9,185,620 / 2,202,499= 4. 7 7,703,105 / 2,288,028= 3. 36 The group ratio increased in year 2012 2. heart and soul debt to total asset = (short term debt + dour term debt) / total asset 2012 (RM000) 2011 (RM000) 10,148,965 / 23,064,868= 0. 44 7,393,721 / 19,655,119= 0. 37 Total funds that areprovided by creditors is increasing in year2012 3. Total asset turnover = Sales / total asset 2012 (RM000) 2011 (RM000) 15,640,272 / 23,064,868= 0. 67 16,154,251 / 19,655,119= 0. 82 4. Profitability = net income / sales 2012 (RM000) 2011 (RM000) ,828,529 / 15,640,272= 0. 11 2,290,513 / 16,154,251= 0. 14 After tax dough decreased per ringgit of sales 5. Market assess * EPS = 0. 2785 * P/E = 18. 2047 * Price per share = 5. 07 * (Current assets current liabilities) / ordinary shares = (9,185,620 2,202,499) / 6,419,174 = 1. 08 * Fair apprize = (5. 07 / 2) + (1. 08 / 2) = 2. 535 + 0. 54 = 3. 075 IOI groups service is decreased on year 2012. The market fair value is much commence than the actual price per share. The option is to shit the share instead of buying it.