- Sime Darby Bhd plans to almost double its market capitalisation to RM100bil on Bursa Malaysia by 2016 from RM57.73bil recorded to date, according to reports.

-  Under its five-year strategy blueprint for 2012-2016, Sime Darby would expand and strengthen its diversified activities in plantation, industrial, motor, property and energy and utilities.

-  Speaking on the sidelines of Invest Malaysia 2014, its executive VP Group Strategy and Business Development Alan Hamzah Sendut said for the plantation division, it would be looking at opportunities to acquire land outside Malaysia.

-  The group aims to achieve an FFB yield of 25 tonnes per hectare and an OER of 23%. We believe Sime Darby Plantation is actively pursuing acquisition opportunities in Indonesia and other African countries, apart from its existing operations in Liberia.

-  The group has said it is eyeing merger and acquisition targets in Indonesia, which would enable the plantation assets there to be listed separately. It has also been reported that its property division could also be spun off.

-  The group is also targeting to double profit contribution from the motors’ division and increase revenue to more than RM20bil from RM17.2bil currently. For the property division, it is aiming to double profit and become one of the top three brands in the country.

-  Meanwhile, reports have it that McLaren Automotive Asia Pte Ltd is eyeing a 30% share of its global sales from Asia this year. Speaking after unveiling the McLaren 650S in KL yesterday, its Asia-Pacific Sales and Operations Head, George Biggs, said last year that out of the total vehicles produced of 1,400, Asian sales accounted for 20%.

-  The McLaren 650S, which is McLaren's fastest supercar, is priced at RM2.4mil. McLaren Kuala Lumpur, owned and operated by Sime Darby Auto Britannia, is the sole distributor of the sports car in Malaysia.

-  We maintain our BUY call for Sime Darby, with a fair value of RM11.20/share – a 10% discount to our SOP value of RM12.45/share. 

Source: AmeSecurities