IOI Corp stock draws Buy call as seasonal CPO recovery lifts outlook
Published on 10/30/2026 at 02:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSIOI Corp outlook and sector signals
- HLIB expects seasonal production trends to support plantation earnings in the third quarter of 2026.
- IOI Corporation is one of the research house's preferred Malaysian plantation stocks.
- Downstream operations remain exposed to tax differences and sector overcapacity.
IOI Corp stock is in focus after HongLeong Investment Bank Research said seasonal crude palm oil production should support plantation-sector earnings in the third quarter of 2026. The assessment was reported by The Edge Malaysia on October 30, citing an HLIB note dated October 27.
Seasonal production supports upstream outlook
HLIB said stronger seasonal cropping trends and sustained downstream performance should drive quarter-over-quarter earnings improvement during the reporting season, which is scheduled to begin on November 5. Fresh fruit bunch output among the research house's covered companies increased between 6% and 35.6% quarter over quarter.
IOI Corporation was one of three planters that recorded stronger sequential volume growth than their Indonesian competitors, according to the report. HLIB expects this operating trend to support upstream earnings growth for IOI in the third quarter.
Buy view comes with sector risks
HLIB maintained an overweight view on the plantation sector and kept IOI Corporation among its preferred stocks with a Buy rating and a MYR 5.16 target price. The research house also retained its 2027 crude palm oil price assumption at MYR 4,500 per metric ton.
The outlook is not uniform across IOI's businesses. HLIB said downstream operations remain under pressure from tax differences and sector overcapacity, although active restocking in oleochemicals could provide some relief amid geopolitical uncertainty and the planned implementation of the European Union Deforestation Regulation.
IOI Corporation Berhad
- ISIN: MYL1961OO001
- Sector: Plantation, palm oil and resource-based manufacturing
- Analyst view: HLIB Buy; sector Overweight
- Target price: MYR 5.16
- Forecast assumption: MYR 4,500 per metric ton for 2027 crude palm oil
Malaysia's plantation companies remain sensitive to seasonal crop volumes, crude palm oil pricing and developments in downstream processing. For broader market context, see current market reports.
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