IOI Corp down after co reported 4Q profit drop

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KUALA LUMPUR (Aug 20): IOI Corp Bhd shares fell as much as seven sen or 1.53% to RM4.50 so far today after the plantation group announced on Friday that net profit declined to RM35.8 million in the fourth quarter ended June 30, 2018 from RM317.5 million a year earlier.

On Friday, IOI Corp said full-year net profit rose to RM3.06 billion from RM743.2 million a year earlier.

Today, Hong Leong Investment Bank Bhd analyst Chye Wen Fei wrote in a note: "IOI's 4QFY18 core net profit of RM172.6 million (q-o-q: -33%; y-o-y: -29.7%) took FY18 core net profit to RM1.09 billion (-1.3%). The results missed our expectation, accounting for only 88% of our forecast. The weaker-than-expected results were due mainly to higher-than-expected CPO (crude palm oil) production cost. Against the consensus, the results came in within market expectations, accounting for 96% of consensus forecast."

At Bursa Malaysia, IOI Corp shares settled at RM4.52 at 12:30pm, bringing the group's market capitalisation to RM27.6 billion. The stock saw 189,900 shares traded.