Sime Darby; Hold
Price Target: RM9.60; SIME MK
Sailing through tougher times

KPI reaffirmed despite weak CPO prices. Impact of weaker than expected CPO ASP may be offset by higher CPO volumes and motor sales. Industrial segment’s performance remains weak in China, but Australia is recovering. No change to our forecasts and RM9.60 TP. HOLD rating reiterated for 3% dividend yield.

Pavilion REIT; Buy
Price Target: RM1.70; PREIT MK
Business as usual

1Q13 earnings in line with expectations; Fashion Avenue and higher Pavilion Tower occupancy underpinned 11% y-o-y revenue growth. Rental upside, large chunk of NLA due for renewal in 2013 and sizeable asset pipeline will drive near and medium term earnings growth. Maintain BUY with DCF-based RM1.70 TP.

Source: HwangDBS Research - 25 Apr 2013