IOI CORPORATION BHD (IOICORP)

IOI Corporation Berhad (1961) - Global Integrated Palm Oil Giant

IOI Corporation Berhad is one of the world's largest integrated palm oil producers. Founded in 1969 and headquartered in Putrajaya, Malaysia, the company commands a market capitalisation of approximately RM26.2 billion, making it one of the three largest Malaysian plantation companies by market size.

IOI Corp operates through two primary business segments:

• Plantation (Upstream) - Oil palm estates spanning approximately 170,000 hectares across Peninsular Malaysia and Sabah. This segment processes Fresh Fruit Bunches (FFB) into Crude Palm Oil (CPO). When CPO prices rise, the earnings impact is direct and immediate.
• Resource-Based Manufacturing (Downstream) - Palm oil refining (RBDPO, cooking oils), oleochemicals (fatty acids, soaps, plastics), and specialty fats. Margins in this segment are structurally thinner, and persistent refining losses have been a recurring drag on group earnings in recent years.

Strategic Direction: Moving Up the Value Chain

IOI Corp is deliberately pivoting away from commodity-grade production toward higher-value-added products. This includes RSPO-certified CPO (premium of US$35-40/tonne) and organic CPO (premium of US$400-500/tonne over conventional). This strategy is designed to reduce exposure to volatile commodity margins and build durable competitive advantages in premium markets.

Shariah Compliance and Certification ✅

IOI Corp is Shariah-compliant - suitable for Muslim investors seeking plantation sector exposure. The company also holds RSPO (Roundtable on Sustainable Palm Oil) certification, which provides meaningful advantages in the increasingly stringent European market.

EUDR Positioning

The EU Deforestation Regulation (EUDR), postponed to December 2026, creates an asymmetric opportunity for IOI Corp. As an established RSPO-certified producer with robust supply chain traceability systems already in place, IOI Corp is significantly better positioned than smaller or uncertified competitors. This certification infrastructure represents a tangible moat in European markets over the medium term.

FY26 Recovery Momentum 📈

Financial year 2026 (ending June 2026) is tracking a strong recovery. First-half FY26 core net profit reached approximately RM795 million, up +21% year-on-year, driven by firmer CPO prices and improving FFB production volumes. This trajectory suggests FY26 could be a record or near-record year for the group.

IOI Corp closed FY26 (ended 30 June 2026) with revenue of RM11,779 million (+3.92% YoY) and reported net profit of RM1,682 million (+10.59% YoY), EPS of 27.0 sen (+9.71% YoY).

Note: the 4QFY26 figures are derived (full-year FY26 total minus the first nine months) as the local quarterly database had not yet been updated with the latest quarter as of this review.

IOI Corp declared a final dividend of 7.0 sen per share (ex-date 14 Sep 2026, paid 25 Sep 2026), bringing FY26 total dividends to 12.5 sen (5.5 sen interim + 7.0 sen final) — up 19.05% from FY25's 10.5 sen (5.0 sen interim + 5.5 sen final).

At the current price of RM4.68, dividend yield stands at 2.99%, with a payout ratio of 40.84%.