Sime Darby

[winston]

not vested

Sime Darby closes higher but plantations, property slump on trading debut

Source: The Star

https://www.thestar.com.my/business/bus ... rty-slump/

[winston]

not vested

Malaysian market to play a bigger role

Upgrade to Add with a TP of RM3.06 (from RM2.18), based on 12.8x CY25F P/E (its historical mean), which provides a 17.8% upside.

We see UMW acquisition as positive, allowing SIME to solidify its leading position in Malaysia’s auto market and reduce reliance on foreign markets.

Declining export demand for Australian mining commodities would impact SIME’s industrial segment in FY24-25F, in our view.

Re-rating catalysts: higher metal prices leading to more demand for heavy machinery.

Downside risks: lower metal prices leading to less demand for heavy machinery, and slower-than-expected end to heavy discounting in China’s auto market.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 70A7A24A70