Stock Name: SIME
Company Name: SIME DARBY BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research is maintaining a TRADING BUY and RM10.90 target on SIME DARBY BHD [].
On Wednesday, March 24, Sime Darby announced that it and Maersk Oil Qatar (MOQ) have reached an amicable settlement of the MOQ project.
CIMB Research said on Thursday, this latest development was good news as it (1) will help put to ease investors' concerns over potential provisioning for this project, (2) will enhance the group's FY11 EPS by 2%, and (3) shows that Sime is trying actively to recover some of the losses from its problematic oil & gas projects.
'We are raising our FY11 EPS by 2% for the write-back of around RM100m. As the impact on our SOP value is just 1 sen, we retain our SOP-based target price of RM10.90. Also unchanged is our TRADING BUY call, which is premised on the potential re-rating catalysts of newsflow on plans to enhance shareholder value and stronger-than-expected results,' it said.
Company Name: SIME DARBY BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research is maintaining a TRADING BUY and RM10.90 target on SIME DARBY BHD [].
On Wednesday, March 24, Sime Darby announced that it and Maersk Oil Qatar (MOQ) have reached an amicable settlement of the MOQ project.
CIMB Research said on Thursday, this latest development was good news as it (1) will help put to ease investors' concerns over potential provisioning for this project, (2) will enhance the group's FY11 EPS by 2%, and (3) shows that Sime is trying actively to recover some of the losses from its problematic oil & gas projects.
'We are raising our FY11 EPS by 2% for the write-back of around RM100m. As the impact on our SOP value is just 1 sen, we retain our SOP-based target price of RM10.90. Also unchanged is our TRADING BUY call, which is premised on the potential re-rating catalysts of newsflow on plans to enhance shareholder value and stronger-than-expected results,' it said.
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