Affin Research: Sime Darby to record core net profit of RM3.4bil in FY13

KUALA LUMPUR: Affin Investment Research expects Sime Darby to record core net profits of RM3.4bil and RM4.0bil in FY13 and FY14, respectively.
The
research house had on Friday maintained its price target of RM10.30 and
Add rating for Sime Darby. The third quarter FY13 results are scheduled
for release on May 31.
Sime Darby's unit awarded a contract to Zecon Bhd
to construct a 10-storey commercial building in Taman Melawati,
Selangor for RM83.0mil. Of the five tender bids, Zecon's was the lowest.
Its indirect subsidiaries were also selling one block of 12-storey commercial office building known as Block H, Oasis Square to Brunsfield Oasis Tower Sdn Bhd RM124.5mil.
The
building was valued at RM115.0mil by VPC Alliance KL in March 2013. The
proposed sale is expected to result in a gain of RM10.9m, which will be
used to fund working capital requirements. They were also selling 15
units of Centre Piazza Double Storey Kiosk and the Oasis Retail Mall
for RM82.5mil.
Affin Research said the two transactions were not expected to significantly change its forecasts.