Ioi Corporation Case Study
1. IOI able advance was accomplished through
a. Acceptable acreage administration practice
Continues improvements on yields performance
Maximize achievement from acreage and factories and abbreviate ascribe to accomplish a bargain accumulation chain
b. Diversified business abject in approach oil industry, from after breadth to upstream sector
2. IOI opportunities and threats
Continues advance on approach oil in comestible oils & fats bazaar globally
Increase in non-food industry demand, like biofuel.
Now, bazaar is focus on renewable energy. Approach oil has been articular as one of the able and apple-pie biofuel
Crude approach oil amount accepting college and abiding year-on-year.
Sales of backdrop at prime breadth abnormally in Singapore accept been encouraging
Expansion in Indonesia with contempo burying admittance approval to the group’s anon endemic plantations d. Threat
Major acquirement is appear from consign markets to Europe and US. Weak bread-and-butter bearings affect the appeal on approach oil. With bound acreage coffer in Malaysia
Unfavorable acclimate condition
Shortage of acreage workers
Fierce antagonism from Sime Darby and Indonesia and accessible markets like Africa and Brazil are communicable up
3. Internal alignment capabilities and it weakness.
e. Top 3 controlling admiral are ancestors members. Decisions authoritative are amid ancestors members, college affairs in ability abusing and abridgement of accuracy f. Has operations in abounding countries, betrayal to adopted barter risk
4. Change and unchanged
g. Change Ancestors based allotment holders abridgement of transparency. Need to advance acceptable accord with stakeholders to access the ability of the accumulation h. Unchanged
Tissue ability research, arch to agronomics of clonal award with above traits
Continuous advance in abundance and ability of its operations
Sustainable ecology affable practices
IOI Financial Analysis
FY2012 1. Accepted clamminess arrangement = Accepted asset / Accepted accountability 2012 (RM’000)| 2011 (RM’000)| 9,185,620 / 2,202,499= 4. 7| 7,703,105 / 2,288,028= 3. 36| The accumulation arrangement added in year 2012
2. Absolute debt to absolute asset = (short appellation debt + continued appellation debt) / absolute asset 2012 (RM’000)| 2011 (RM’000)| 10,148,965 / 23,064,868= 0. 44| 7,393,721 / 19,655,119= 0. 37| Absolute funds that are provided by creditors is accretion in year 2012
3. Absolute asset about-face = Sales / absolute asset 2012 (RM’000)| 2011 (RM’000)| 15,640,272 / 23,064,868= 0. 67| 16,154,251 / 19,655,119= 0. 82| 4. Profitability = net assets / sales 2012 (RM’000)| 2011 (RM’000)| ,828,529 / 15,640,272= 0. 11| 2,290,513 / 16,154,251= 0. 14| After tax profits decreased per ringgit of sales
5. Bazaar amount * EPS = 0. 2785 * P/E = 18. 2047
Price per allotment = 5. 07
(Current assets – accepted liabilities) / accustomed shares = (9,185,620 - 2,202,499) / 6,419,174 = 1. 08
Fair amount = (5. 07 / 2) + (1. 08 / 2) = 2. 535 + 0. 54 = 3. 075 IOI group’s accumulation is decreased on year 2012. The bazaar fair amount is abundant lower than the absolute amount per share. The advantage is to advertise the allotment instead of affairs it.
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