85904049

IOI Corporation Case Study 1 . IOI solid growth was achieved by using a. Good planting management practice * Continues improvements on yields performance * Improve output via plantation and factories and minimize insight to achieve a low-cost source chain n.

Diversified business base in palm oil sector, from downstream sector to upstream sector 2 . IOI opportunities and threats c. Opportunity 5. Continues progress on palm oil in ready-to-eat oils & fats industry globally * Increase in non-food industry require, like biofuel crop.

Now, companies are focus on power. Palm oil has been identified as one of the efficient and clean biofuel crop * Elementary palm oil value getting higher and stable year-on-year. 5. Sales of properties by prime region especially in Singapore have been pushing * Expansion in Philippines with recent planting enable approval for the group’s directly owned plantations d. Danger * Major revenue is usually come from foreign trade markets to Europe and US. Poor economic situation affect the demand in palm oil. With limited land bank in Malaysia 2. Unfavorable the weather * Shortage of estate workers * Fierce competition by Sime Darby and Philippines and approaching markets just like Africa and Brazil will be catching up 3. Inner organization capabilities and this weakness. elizabeth. Top 3 executive company directors are family members. Decisions making are among family members, larger chances in power harming and not enough transparency f. Has businesses in many countries, uncover to forex risk some. Change and unchanged g. Change Relatives based discuss holders insufficient transparency. Ought to maintain good relationship with stakeholders to boost the efficiency of the group they would. Unchanged * Tissue tradition research, bringing about cultivation of clonal hands with remarkable traits 2. Continuous improvement in production and effectiveness of the operations 5. Sustainable environmental friendly practices IOI Economic Analysis FY2012 1 . Current liquidity proportion = Current asset as well as Current legal responsibility 2012 (RM’000)| 2011 (RM’000)| 9, 185, 620 as well as 2, 202, 499= 5. 7| 7, 703, a hundred and five / two, 288, 028= 3. 36| The group ratio increased in season 2012 2 . Total debt to total advantage = (short term debts + permanent debt) as well as total advantage 2012 (RM’000)| 2011 (RM’000)| 10, 148, 965 / 23, 064, 868= zero. 44| several, 393, 721 / nineteen, 655, 119= 0. 37| Total funds that areprovided by collectors is increasing in year2012 3. Total asset turnover = Sales / total asset 2012 (RM’000)| 2011 (RM’000)| 15, 640, 272 / twenty three, 064, 868= 0. 67| 16, 154, 251 / 19, 655, 119= zero. 82| 4. Profitability sama dengan net income / sales 2012 (RM’000)| 2011 (RM’000)|, 828, 529 / 15, 640, 272= zero. 11| a couple of, 290, 513 / sixteen, 154, 251= 0. 14| After duty profits lowered per ringgit of sales 5. The true market value * EPS = zero. 2785 2. P/E = 18. 2047 * Selling price per share = a few. 07 * (Current possessions ” current liabilities) as well as ordinary shares = (9, 185, 620 , two, 202, 499) / 6, 419, 174 = 1 ) 08 5. Fair value = (5. 07 as well as 2) & (1. 08 / 2) = 2 . 535 + 0. fifty four = three or more. 075 IOI group’s earnings is decreased on yr 2012. The marketplace fair value is much below the actual cost per talk about. The option is to sell the share rather than buying this.

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