IOI Corp, MYL1961OO001

IOI Corp stock gains HLIB support as CPO recovery lifts outlook

Published on 11/04/2026 at 00:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

IOI Corp stock is among HLIB's preferred Malaysian plantation names. The bank expects seasonal production to lift third-quarter earnings.

What HLIB sees for IOI

Seasonally stronger cropping and sustained downstream activity are expected to lift plantation earnings in the third quarter of 2026.
IOI Corp is one of HLIB's preferred Malaysian plantation names as the bank maintains an overweight view on the sector.
The next reporting season is scheduled to begin on November 5.

IOI Corp, MYL1961OO001, Illustration mit AI erstellt.

Seasonally stronger crude palm oil production is expected to improve plantation earnings in the third quarter of 2026, with IOI Corp among the Malaysian names favored by HongLeong Investment Bank Research. The Edge Malaysia reported on November 4 that the view came from an HLIB note dated October 27.

HLIB said stronger cropping trends and sustained downstream performance should support sequential earnings improvement during the reporting season beginning November 5. Fresh fruit bunch output at companies covered by the research house rose between 6% and 35.6% quarter over quarter, and IOI was among the Malaysian planters that outperformed Indonesian peers on production growth.

Upstream strength meets margin pressure

HLIB expects IOI's upstream operations to support third-quarter earnings as seasonal production improves. Downstream operations remain exposed to tax differentials and industry overcapacity, although restocking in oleochemicals could cushion pressure amid geopolitical uncertainty and the planned implementation of the European Union Deforestation Regulation.

HLIB kept an overweight rating on the plantation sector and maintained a Buy call on IOI Corp with a MYR 5.16 target. The research house also retained its 2027 crude palm oil price assumption at MYR 4,500 per metric ton. These assumptions leave the share's outlook sensitive to production volumes, palm oil prices and downstream margins.

For the full report, see The Edge Malaysia.

Integrated palm oil operations

IOI Group is an integrated palm oil company with plantation operations in Malaysia and Indonesia. Its downstream businesses include palm oil refining, oleochemicals and specialty food ingredients, while its renewables activities include palm wood, pulp and paper.

The group has a broader integrated model than plantation-only peers such as Hap Seng Plantations and Johor Plantations Group. IOI also serves customers across Asia, Europe and the United States, giving it a wider geographic and product footprint than operators focused more narrowly on upstream cultivation.