Stock Name: SIME
Company Name: SIME DARBY BHD
Research House: HWANGDBS
Company Name: SIME DARBY BHD
Research House: HWANGDBS
HwangDBS Vickers Research has reiterated its "buy" call on Sime Darby with a target price of RM9.13 in view of the better financial performance in the fourth quarter.
The research house said the improved outlook is underpinned by rising crude palm oil output, recovery in property, and continued strength in industrial and motor.
"We expect the outcome of a portfolio review to also result in a leaner and more focused Sime Darby, hence, improved long-term growth prospects, despite its size," it said in a research note today.
Sime Darby had earlier announced the signing of a memorandum of understanding (MoU) with Petronas Nasional Bhd and Marine and Heavy Engineering Holdings Bhd (MHB) to sell its Teluk Ramunia and Pasir Gudang yards for RM695 million -– above the combined book value of RM641 million.
HwangDBS said terms and conditions of the sale are to be worked out in two months' time.
The research house said Sime Darby is committed to completing the ongoing Oil and Natural Gas Corp Ltd (ONGC) and Kebabangan Northern Hub Development Project after this sale, by leasing back the yards from Petronas.
At lunch break Sime Darby's stock rose three sen to RM9.16 -- Bernama
The research house said the improved outlook is underpinned by rising crude palm oil output, recovery in property, and continued strength in industrial and motor.
"We expect the outcome of a portfolio review to also result in a leaner and more focused Sime Darby, hence, improved long-term growth prospects, despite its size," it said in a research note today.
Sime Darby had earlier announced the signing of a memorandum of understanding (MoU) with Petronas Nasional Bhd and Marine and Heavy Engineering Holdings Bhd (MHB) to sell its Teluk Ramunia and Pasir Gudang yards for RM695 million -– above the combined book value of RM641 million.
HwangDBS said terms and conditions of the sale are to be worked out in two months' time.
The research house said Sime Darby is committed to completing the ongoing Oil and Natural Gas Corp Ltd (ONGC) and Kebabangan Northern Hub Development Project after this sale, by leasing back the yards from Petronas.
At lunch break Sime Darby's stock rose three sen to RM9.16 -- Bernama
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