Stock Name: SIME
Company Name: SIME DARBY BHD
Sime Darby Property Bhd, a unit of Sime Darby Bhd (SIME MK, Hold, TP: RM9.82), plans to build its 11th township development north of its existing Denai Alam township in Selangor. Head of property development Zulkifli Tahmali said the township is at its planning stage but will measure 404.8ha along the Guthrie Corridor Expressway, which also sites the Bukit Jelutong development. "The new township will be a mix of residential, commercial and industrial (development), but we have not finalised the GDV yet," Zulkifli told reporters. (Business Times)
Comment: This news is in line with management's previous guidance when they previously indicated their intention to launch 1 new township every 2 years. We expect this township to be the one indicated earlier by Sime's management, measuring about 2,300 acres located near the Guthrie Corridor. However, the earmarked land measures 1,000 acres (404.8ha) with another 1,300 acres for possible future development. Sime has a balance landbank of 11,447 acres, where 2,700 acres are located in their existing townships and 8,747 acres are located in their future townships. The property segment contributed 8% of Sime's earnings in FY11. We make no changes to our earnings estimates and maintain our Hold call and TP. (Aris Sharif)
Company Name: SIME DARBY BHD
| Research House: ECMLIBRA | Price Call: HOLD | Target Price: 9.82 |
Sime Darby Property Bhd, a unit of Sime Darby Bhd (SIME MK, Hold, TP: RM9.82), plans to build its 11th township development north of its existing Denai Alam township in Selangor. Head of property development Zulkifli Tahmali said the township is at its planning stage but will measure 404.8ha along the Guthrie Corridor Expressway, which also sites the Bukit Jelutong development. "The new township will be a mix of residential, commercial and industrial (development), but we have not finalised the GDV yet," Zulkifli told reporters. (Business Times)
Comment: This news is in line with management's previous guidance when they previously indicated their intention to launch 1 new township every 2 years. We expect this township to be the one indicated earlier by Sime's management, measuring about 2,300 acres located near the Guthrie Corridor. However, the earmarked land measures 1,000 acres (404.8ha) with another 1,300 acres for possible future development. Sime has a balance landbank of 11,447 acres, where 2,700 acres are located in their existing townships and 8,747 acres are located in their future townships. The property segment contributed 8% of Sime's earnings in FY11. We make no changes to our earnings estimates and maintain our Hold call and TP. (Aris Sharif)
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