Kenanga expects Sime to hit RM4.02b

Publish date: Wed, 22 Aug 2012, 12:44 PM
Kenanga Research expects Sime Darby's core earnings to hit a historical high of RM4.02 billion in its 2012 financial year earnings.

This was in line with the RM4 billion consensus estimate, it said.

Sime Darby will release its FY12 earnings results on Aug 29.
"We also expect the year-on-year core earnings growth to be decent at about four per cent, mainly driven by the 30 per cent earnings before interest and tax growth in its industrial segment to RM1.36 billion," it said.

Strong demand in mining, logging and construction sectors in Malaysia, Singapore and Australasia has also boosted its earnings, it said in a research note.

It said plantation division earnings should be flattish in FY12 as the higher crude palm oil (CPO) prices fetched would be offsetted by the overall three per cent decline in fresh fruit bunches to 9.76 million metric tonnes.

"We believe the likely final dividend to be announced will be eight per cent higher year-on-year against last year's 22 sen final dividend in line with improved earnings.

"Combined with the interim 10 sen net dividend announced earlier in end-February, we expect FY12 earnings total net dividend of 33.8 sen, implying a decent net dividend yield of 4.2 per cent," the research firm added.

Kenanga Research expects a 50 per cent payout ratio in line with Sime Darby's historical practice to pay out a minimum 50 per cent of its earnings.

Kenanga Research's target price for Sime Darby is RM10.30.
At 11.30 am, Sime Darby's share price was flat at RM9.80. -- Bernama

Labels: SIME

Discussions
Be the first to like this. Showing 5 of 5 comments

NavinShah

SIME DARBY THE MOST BEAUTIFUL WOMAN IN THE WORLD. DEAF, DUMB AND BLIND MADE WIDOW BY THE PRESENT MANAGEMENT.

2012-08-22 20:51

Namoyaki Takarajima

LOL, What a statement.

2012-08-22 21:06

KC Loh

if there was one for creativity, navinshah surely win hands-down! hahaha

2012-08-22 21:09

stella teo

not to forget previous management as well. what a shame such a massive corporation managed by the wrong fit all the time.

2012-08-22 21:41

Raymond Tiruchelvam

earnings of RM4b... which is about the same as Maybank, so why is it trading at much lower P/E ??? Is there an upside here? But kenanga only gives it a price target of RM10.30 a meagre 50c above current price.

2012-08-27 16:45

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