KUALA LUMPUR: OSK Research is maintaining its Sell call on SIME DARBY BHD [] with a price target of RM7.02 from its previous RM6.94.
The research house said on Tuesday, March 2 that although some divisions performed rather well, on the whole Sime Darby’s 1HFY10 earnings were substantially below expectations.
“Even against our conservative forecast, which was 4.9% below consensus, Sime underperformed. We believe there should be improvement in 2H and thus leave our FY10 forecast largely unchanged.
“Sime’s valuation is still not compelling even after the stock’s recent price correction. We maintain our Sell call,” it said.
OSK Research said Sime Darby’s annualised 1H core earnings were 25.2% below its forecast of RM2708.4 million and 28.8% below consensus forecast of RM2847.8 million. Besides the higher than expected effective tax rate of 32.8%, core earnings at pre-tax level also fell below expectation by 13.0%.
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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