Sime Darby: Upgrade to Buy - Outperformer; Upgrade to BUY

• Above expectations. FY6/12 net profit was MYR4,150m (+13% YoY), above our expectations but in line with consensus, boosted by low taxes.
• All divisions posted better results except plantations. We tweak our FY6/13-14 forecasts by +1-2%, largely on a lower assumed tax rate of 27% (previously 30%).
• We roll forward our valuation base to FY6/14 on an unchanged 16x PER target to derive a new TP of MYR11.00 (previously MYR10.80) – upgrade to BUY. Sime proposed a final single
• tier DPS of 25sen, to bring FY6/12 DPS to 35sen.

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Source: Maybank Research - 30 August 2012