Airasia..i love u...

IOI Corp still expensive, switch to Asiatic, Hap Seng Con

KUALA LUMPUR: IOI Corporation Bhd remains expensive compared with its peers as the shares are trading at an implied average crude palm oil (CPO) price of RM3,450 per tonne, based on a target 18 times price-to-earnings ratio (PER) for CY09, says Aseambankers Equity Research.

�Fundamental investors with long term investment horizons should continue to trim their positions to better-valued mid-cap plantation stocks like Asiatic and Hap Seng Consolidated,� said the research house.

It said it acknowledged that CPO prices might continue trending upwards in the near term and IOI Corp, being a favourite among traders for its liquidity and proxy to CPO prices, might still enjoy the ride.

Aseambankers Research advised investors to �sell into strength with a revised target price of RM5.90� as it rolled forward its valuation period. Its previous target price was RM5.70 while the current price was RM7.45.

IOI Corp reported third quarter net profit of RM601.64mil for the period ended March 31, up 57% from RM382.17mil a year ago. Revenue rose 54% to RM3.5bil against RM2.27bil.

For the nine-months period, net profit was RM1.16bil on revenue of RM10.1bil.

Aseambankers Research said the nine-month earnings was within its and market expectations. Except for the property segment, all other businesses showed significant improvements, with group earnings before interest and taxation (EBIT) at RM2.28bil (up 61% year-on-year), and a one percentage point margin improvement to 23%.

Plantations outperformed with EBIT nearly doubling to RM1.30bil, backed by higher average CPO selling prices of RM2,705 per tonne (9MFY07: RM1,649 per tonne, up 64% on-year) and fresh fruit bunches (FFB) production growth of 4.4%.

Resource-based manufacturing EBIT jumped 47% on-year to RM457mil, lifted by newly-acquired Pan Century and its refinery in Rotterdam. Overall group earnings were also boosted by a RM226mil forex translation gain on US dollar borrowings.

Following its sector report on May 12 and after taking into account IOI�s policy of selling forward two to three months� physical production, the research house raised its FY09-10 average CPO price assumptions for IOI to RM2,850 tonne and RM2,500 tonne respectively (from RM2,600 and RM2,250).

�This raises our FY09-FY10 net profit forecasts by 8.4% and 10.3% respectively,� it said.

URL: http://biz.thestar.com.my/news/story.asp?f...55&sec=business

High Crude Oil price + Tight competation with MAS=Air Asia Lowest Since IPO

Guys, what do you think of PICORP - worth investing?

wait it < 1.0.. then maybe will consider to goreng a bit

lol i remember someone said, hopefully AA price dun become like their promo slogan "everyday low fare"

Now that would be a real nightmare.

HAHAHAHAH

Now that woke me up..."everyday low fare" Low fare is still better than Sub Zero Fare!

This post has been edited by AdamG1981: May 16 2008, 01:12 PM

Wat to do >.< haha if want to goreng must buy large and sell within 2 cents maa

I thought you will dispose at 925.

Anyways good luck!

AA...last time offer Rm0.99 per flight...dunno Airasia shares price fall below Rm0.99 or not.

I oso love to see AA to be penny, then when oil price drop to 100-110, we can everyday fly..

I did queue up yest at 0.925 but the amount of sellers queuing was crazy T.T

looks like MAS is the one losing the battle.....MAS price is dropping while AASIA is recovering....

Dont worry any trouble MAS gets into will surely be bail out with taxpayer's money...

i dont know what the hell is pak lah doing?

how's LSTEEL doing??? has the Steel crave n momentum carried on???
next week if PBBANK drop somemore will get some.....

sleeping ? lol


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CI closed above 1300 today .. .. is there any sign for a better deal next week? .. ..