Wednesday, August 24, 2016

Results Note � Sime Darby (SELL, downgrade)


Top Calls

Results Note Sime Darby (SELL, downgrade)

- Proposed private placement is a surprise

Excluding large disposal gain and other one-off items and in spite of a large special Indonesian tax incentive, 12MFY16 core net profit declined 18.7% yoy but is above our expectations. Challenges remain but management sees some bright spots. We maintain our FY17/18E forecasts and TP. Stock is trading at an expensive level now and rating is downgraded to SELL from HOLD. The surprise announcement of a proposed private placement at a yet to be determined discount will cap share price upside.


Other Calls

Results Note IOI Corp (HOLD, maintain)

- Below expectations, maintain HOLD

Results Note SP Setia (HOLD, downgrade)

- Achieved RM1.1bn property sales in 1H16



Results Note MSM (HOLD, maintain)

- Hurt by raw sugar prices



Results Note MCIL (SELL, maintain)

- Disappointing start to the year



For important disclosures, please refer to the Disclosure section at the end of the individual linked research reports.

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