CI to have annual net profit growth of between 11-30 per cent

KUALA LUMPUR: CI Holdings Bhd (CI) has been projected by AmInvestment Bank Bhd (AmInvestment Bank) to have an annual net profit growth of between 11 per cent and 30 per cent for the three years from financial year 2018 (FY18).

According to AmInvestment Bank, this was premised on continued top-line growth and a gradual improvement in gross margins.

AmInvestment Bank noted that the group buys, sells, manufactures and packs various types of edible oils based on refined bleached deodorised (RBD) palm olein.

“It sells to around 150 distributors that serve household and industrial (food industry) users,” the research firm said.

AmInvestment Bank highlighted in a report that one of the main challenges for CI is to contain the impact of rising input costs on gross margins, given the group’s place in the industry value chain and largely undifferentiated product line.

The research firm noted that another main challenge for CI is to continue the group’s trajectory of top-line growth with higher exports while building a defence of stronger margins for the longer term.