Sime Darby (1HFY12 Results): On track for a stronger year

Stock Name: SIME
Company Name: SIME DARBY BHD

Research House: ECMLIBRA

Price Call: HOLD

Target Price: 9.82

Maintain HOLD, TP: RM9.82

Sime Darby's 1HFY12 adjustednet profits came in strong, making up 49% of house and 53% of consensusestimates. 6MFY12 earnings were driven by plantation and industrial segmentswhich both increased by 38% y-o-y. The group recorded CPO ASP of RM2,872/mtduring 1HFY12. Earnings surprise came from the E&U segment, where RM99.4mof revenue (to flow directly to bottomline) was recognized. A dividend of 10sen was declared. We maintain our HOLD call for Sime with an unchanged TP ofRM9.82.

Source: ECM Newz Bits 01 March 2012, Full PDF Report