Plantation and property surprised. Sime’s 2QFY12 net profit of RM1,101m
(+3% QoQ, +26% YoY) was above our expectation but in line with
consensus. We raise FY12-14 forecasts by 9-16% p.a. to reflect higher
CPO ASP assumption of RM2,800/t (+7.7%; from RM2,600/t) for 2012-13,
mainly on poorer South American crop prospects sustaining prices.
Despite our raised earnings, Sime remains a Hold, with +2% upside. Our
new TP is RM9.90 (+16%), based on a rolled-forward 16x CY13 PER
(previously RM8.50 on 16x FY13 PER).
Maybank Research 1 March 2012
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