Ioi Corporation

IOI Corporation Case knowledge 1. IOI strong growth was achieved through a. true(p) plantation management practice * Continues improvements on yields performance * Maximize output from plantation and factories and minimize input to achieve a low-cost supply chain b. diversify business base in plow cover industry, from downstream sector to upstream sector 2. IOI opportunities and threats c. Opportunity * Continues growth on plow anoint in pabulum oils & fats market globally * Increase in non-food industry demand, like biofuel.Now, market is point on renewable energy. Palm oil has been identified as one of the effective and clean biofuel * Crude palm oil price getting higher and enduring year-on-year. * Sales of properties at prime sports stadium especially in Singapore swallow been encouraging * Expansion in Indonesia with recent planting permit approval to the assorts directly owned plantations d. bane * Major revenue is come from trade markets to Europe and US. Weak economic position affect the demand on palm oil. With limited land bank in Malaysia * Unfavorable weather condition * deficit of estate workers * Fierce competition from Sime Darby and Indonesia and coming(prenominal) markets like Africa and Brazil are genetic up 3. Internal organization capabilities and it weakness. e. cover charge 3 executive directors are family members. Decisions devising are among family members, higher chances in role abusing and lack of transparency f. Has operations in many countries, expose to foreign put back risk 4. alteration and unchanged g. Change Family based dowry holders lack of transparency. enquire to maintain good relationship with stakeholders to add the efficiency of the group h. Unchanged * interweave culture research, leading to cultivation of clonal palms with superior traits * Continuous improvement in productivity and efficiency of its operations * sustainable environmental friendly practices IOI Financial compendium FY2012 1. rate of flow liquidity ratio = Current asset / Current liability 2012 (RM000) 2011 (RM000) 9,185,620 / 2,202,499= 4. 7 7,703,105 / 2,288,028= 3. 36 The group ratio increase in year 2012 2. marrow debt to occur asset = (short line debt + long term debt) / fundamental 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. positiveness = net income / sales 2012 (RM000) 2011 (RM000) ,828,529 / 15,640,272= 0. 11 2,290,513 / 16,154,251= 0. 14 After tax profits rock-bottom per ringgit of sales 5. Market value * EPS = 0. 2785 * P/E = 18. 2047 * Price per share = 5. 07 * (Current assets ongoing liabilities) / ordinary shares = (9,185,620 2,202,499) / 6,419,174 = 1. 08 * Fair value = (5. 07 / 2) + (1. 08 / 2) = 2. 535 + 0. 54 = 3. 075 IOI gro ups profit is decreased on year 2012. The market clean value is much lower than the essential price per share. The option is to sell the share instead of buying it.