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Hot Stock Sime Darby rises 0.74% despite weaker 3Q profit
by Cals Mon 03 Jun 2013, 14:53
Hot Stock Sime Darby rises 0.74% despite weaker 3Q profit
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Monday, 03 June 2013 13:00
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KUALA LUMPUR (June 3): SIME DARBY BHD [] climbed as much as seven sen or 0.74% although the diversified group’ third quarter earnings were below analysts’ expectations.
Analysts said Sime Darby's diversified businesses which include PLANTATION []s, property, healthcare are expected to support the company's income amid a decline in crude palm oil (CPO) prices.
At 12:16pm, Sime Darby was traded four sen or 0.42% higher at RM9.46. A total of 1.63 million shares changed hands after the stock changed hands between RM9.43 and RM9.49.
The stock had settled at RM9.46 at the 12.30pm lunchbreak.
Last Friday, Sime Darby announced that its net profit in the third quarter ended March 31, 2013 (3QFY13) fell 21% year-on-year on lower pre-tax profit from its plantation, industrial, and energy and utilities divisions.
Group net profit for 3QFY13 was RM691.25 million on RM10.84 billion in revenue. The previous corresponding quarter’s net profit amounted to RM876.01 million on revenue of RM10.94 billion.
In a note today, RHB Research analyst Hoe Lee Leng said the research house has maintained its “buy” recommendation on Sime Darby and raised its target price (TP) for the latter by 30 sen to RM10.70.
“We maintain our "buy" recommendation on the stock as we believe Sime Darby, as an integrated player with stable contributions from non plantation-related industries, will have an earnings buffer during a crude palm oil price (CPO) downturn, while its valuations, which are at a two to three times discount to its peers, are undemanding,” said Hoe.
Kenanga Investment Bank analyst Lim Seong Chun said despite Sime Darby’s earnings miss, strong liquidity in the local market is likely to limit the latter's share price downside.
“We would advocate a 'buy on weakness’ strategy when the share price falls below RM9.20,” Lim said in a note today.
Kenanga has retained its “outperform” rating on Sime Darby with an unchanged TP of RM9.80.
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Monday, 03 June 2013 13:00
A + / A - / Reset
KUALA LUMPUR (June 3): SIME DARBY BHD [] climbed as much as seven sen or 0.74% although the diversified group’ third quarter earnings were below analysts’ expectations.
Analysts said Sime Darby's diversified businesses which include PLANTATION []s, property, healthcare are expected to support the company's income amid a decline in crude palm oil (CPO) prices.
At 12:16pm, Sime Darby was traded four sen or 0.42% higher at RM9.46. A total of 1.63 million shares changed hands after the stock changed hands between RM9.43 and RM9.49.
The stock had settled at RM9.46 at the 12.30pm lunchbreak.
Last Friday, Sime Darby announced that its net profit in the third quarter ended March 31, 2013 (3QFY13) fell 21% year-on-year on lower pre-tax profit from its plantation, industrial, and energy and utilities divisions.
Group net profit for 3QFY13 was RM691.25 million on RM10.84 billion in revenue. The previous corresponding quarter’s net profit amounted to RM876.01 million on revenue of RM10.94 billion.
In a note today, RHB Research analyst Hoe Lee Leng said the research house has maintained its “buy” recommendation on Sime Darby and raised its target price (TP) for the latter by 30 sen to RM10.70.
“We maintain our "buy" recommendation on the stock as we believe Sime Darby, as an integrated player with stable contributions from non plantation-related industries, will have an earnings buffer during a crude palm oil price (CPO) downturn, while its valuations, which are at a two to three times discount to its peers, are undemanding,” said Hoe.
Kenanga Investment Bank analyst Lim Seong Chun said despite Sime Darby’s earnings miss, strong liquidity in the local market is likely to limit the latter's share price downside.
“We would advocate a 'buy on weakness’ strategy when the share price falls below RM9.20,” Lim said in a note today.
Kenanga has retained its “outperform” rating on Sime Darby with an unchanged TP of RM9.80.
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