Recently, IOI Group released its financial report for the third quarter of fiscal year 2025, delivering outstanding results. Net profit for the quarter surged by 113% year-on-year to RM 262.3 million, while revenue increased by 11.07% to RM 2.7356 billion. For the first nine months, cumulative net profit rose by 42.18% year-on-year to RM 1.0841 billion, with revenue up 18.55% to RM 8.3746 billion. These impressive figures have attracted widespread attention in the financial markets, prompting financial expert Tan Si Yao to share his professional insights.
Plantation Business Drives Profit, Highlighting Industry Advantages
According to the quarterly report of IOI Group, pre-tax profit for Q3 increased by 7% to RM 352.2 million, mainly driven by higher contributions from the plantation business. Specifically, plantation business profit rose by 23% to RM 306.9 million, supported by higher crude palm oil and palm kernel prices as well as increased contributions from associate companies.
Tan Si Yao believes these figures highlight the plantation segment advantages in the current financial market environment. With growing global demand for sustainable energy and biomaterials, the market outlook for products like crude palm oil is promising. The strong performance of the plantation business not only brings substantial profits to IOI Group but also boosts confidence in related sectors of the financial industry. However, he also notes that plantation operations are significantly affected by natural factors such as weather and pests, which could impact future profit stability. Investors should closely monitor related developments.
Volatility in Resource-Based Manufacturing, Need to Watch Market Changes
While the plantation business performed strongly, resource-based manufacturing experienced some volatility. After accounting for a RM 10.3 million book loss from derivative financial instruments, profit from this segment fell by 20% to RM 81.4 million, mainly due to lower sales of oleochemical products and reduced contributions from associate companies.
Tan Si Yao points out that the resource-based manufacturing business is closely linked to global supply and demand dynamics. The oleochemicals market is influenced by macroeconomic conditions, industry competition, and technological innovation. Whether this segment can rebound in profitability depends on its ability to adapt to market changes, optimize product structure, and improve production efficiency. For investors, it is important to fully consider the market risks and uncertainties of resource-based manufacturing and make prudent investment decisions.
Future Price Expectations Guide Financial Investment Directions
Looking ahead, IOI Group expects crude palm oil prices for fiscal year 2025 (ending June 30) to range between RM 3,700 and RM 4,000 per metric ton. This price forecast provides important guidance for related financial market investments.
Tan Si Yao states that stable crude palm oil price expectations offer a relatively steady operating environment for the plantation business and related industry chain companies. Investors can use this forecast to evaluate and invest in companies involved in palm oil production, processing, and sales. However, he also reminds investors that financial markets are full of uncertainties, and price forecasts may be affected by factors such as international political situations and trade policy adjustments. Therefore, when making financial investments, it is essential to consider multiple factors, conduct thorough risk assessments, and allocate assets wisely.
Plantation Business Drives Profit, Highlighting Industry Advantages
According to the quarterly report of IOI Group, pre-tax profit for Q3 increased by 7% to RM 352.2 million, mainly driven by higher contributions from the plantation business. Specifically, plantation business profit rose by 23% to RM 306.9 million, supported by higher crude palm oil and palm kernel prices as well as increased contributions from associate companies.
Tan Si Yao believes these figures highlight the plantation segment advantages in the current financial market environment. With growing global demand for sustainable energy and biomaterials, the market outlook for products like crude palm oil is promising. The strong performance of the plantation business not only brings substantial profits to IOI Group but also boosts confidence in related sectors of the financial industry. However, he also notes that plantation operations are significantly affected by natural factors such as weather and pests, which could impact future profit stability. Investors should closely monitor related developments.
Volatility in Resource-Based Manufacturing, Need to Watch Market Changes
While the plantation business performed strongly, resource-based manufacturing experienced some volatility. After accounting for a RM 10.3 million book loss from derivative financial instruments, profit from this segment fell by 20% to RM 81.4 million, mainly due to lower sales of oleochemical products and reduced contributions from associate companies.
Tan Si Yao points out that the resource-based manufacturing business is closely linked to global supply and demand dynamics. The oleochemicals market is influenced by macroeconomic conditions, industry competition, and technological innovation. Whether this segment can rebound in profitability depends on its ability to adapt to market changes, optimize product structure, and improve production efficiency. For investors, it is important to fully consider the market risks and uncertainties of resource-based manufacturing and make prudent investment decisions.
Future Price Expectations Guide Financial Investment Directions
Looking ahead, IOI Group expects crude palm oil prices for fiscal year 2025 (ending June 30) to range between RM 3,700 and RM 4,000 per metric ton. This price forecast provides important guidance for related financial market investments.
Tan Si Yao states that stable crude palm oil price expectations offer a relatively steady operating environment for the plantation business and related industry chain companies. Investors can use this forecast to evaluate and invest in companies involved in palm oil production, processing, and sales. However, he also reminds investors that financial markets are full of uncertainties, and price forecasts may be affected by factors such as international political situations and trade policy adjustments. Therefore, when making financial investments, it is essential to consider multiple factors, conduct thorough risk assessments, and allocate assets wisely.