IOI Corp (ΙΟΙ ΜΚ)

Undervalued Big Cap; Keep BUY

Forecasts and Valuation

Source: Company data, RHB

Emissions And ESG

Trend analysis

In 2024, Scope 1 emissions decreased to 0.7m tonnes of CO2 equivalents (2023: 1.1m tonnes of CO2 equivalents) while Scope 3 emissions decreased to 4.4m tonnes of CO2 equivalents (2023: 6.7m tonnes of CO2 equivalents).

Source: Company data, RHB

Latest ESG-Related Developments

Sustainability certification: As of end FY24, 100% of IOI’s mills and 96% of its estates are RSPO certified.

Traceability: as of end-FY24, IOI managed to achieve 100% traceability to plantation and mills.

Reducing GHG emissions: IOI plans to reduce its Scope 1 and 2 emissions by 40% by 2025 against its 2015 carbon intensity emissions and to achieve net-zero for Scope 1,2 and 3 by 2040.

ESG Unbundled

Overall ESG Score: 3.1 (out of 4)
Last Updated: 2 July 2025

E Score: 3.3 (EXCELLENT)
IOI discloses its greenhouse gas (GHG) emissions from each operating segment, and is forecasted to reduce its GHG emissions intensity by 19% in 2020 (from 2015) and 41% by 2025. This is likely to surpass Malaysia’s national commitment to reduce carbon emission intensity by 45% from its 2005 baseline, by 2030.

S Score: 2.7 (GOOD)
In 2017, IOI published its Foreign Workers Recruitment Guideline, which was developed with various stakeholders including NGOs. IOI is committed to ensuring continuous and consistent practices of human rights, while uniform labour laws are adhered to, via internal audits conducted by its sustainability team.

G Score: 3.0 (GOOD)
57% of IOI’s board members are independent, with full disclosure on director remuneration including salaries and bonuses on a named basis. IOI has an in-house investor relations team and holds investor meetings regularly, embodying good transparency and disclosure practices.

ESG Rating History

[Chart data not available in text format]

Source: RHB

Financial Exhibits

Income statement (MYRm)

Cash flow (MYRm)

Balance sheet (MYRm)

Key metrics

Source: Company data, RHB

Figure 1: IOI’s progress on ESG factors

Note: * Water efficiency data drastically different YoY likely due to a change in reporting/calculation
Source: Company data, RHB

Figure 2: IOI’s forecast assumptions

Source: RHB

Figure 3: SOP valuation

Note: *Excludes treasury shares
Source: RHB

Recommendation Chart

Source: RHB, Bloomberg

RHB Guide to Investment Ratings

• Buy: Share price may exceed 10% over the next 12 months
• Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain
• Neutral: Share price may fall within the range of +/- 10% over the next 12 months
• Take Profit: Target price has been attained. Look to accumulate at lower levels
• Sell: Share price may fall by more than 10% over the next 12 months
• Not Rated: Stock is not within regular research coverage

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