STOCK FOCUS OF THE DAY
Sime Darby : A slew of exceptional gains again HOLD
Maintain HOLD on Sime Darby with an unchanged RNAV-based fair value of RM8.50/share. Ex-date for the spin-offs of Sime Darby (SD) Plantation and Sime Darby (SD) Property is 27 November 2017. SD Plantation and SD Property are expected to be listed at the end of November 2017. Based on a share price of RM9.05, the reference price for SD Plantation is expected to range from RM5.43/share to RM6.15/share while for SD Property is between RM1.45/share and RM1.72/share. The reference price of Sime Darby Bhd, which will only consists of motor, industrial and logistics operations after the spin-off of property and plantation, will range from RM1.18/share to RM2.17/share.
Sime's annualised core net profit was below our forecast and consensus estimates. The discrepancies between Sime's results and our earnings forecast were due to weak downstream earnings, lower-than-expected EBIT margin in the motor segment and higher-than-estimated tax rate. In spite of this, we are keeping our earnings forecast for now in anticipation of an earnings recovery in the rest of the financial quarters.
Others :
Econpile Hldgs : Bagging RM208.7mil piling works for LRT3 HOLD
QUICK TAKE
CIMB Group : Secured approval to operate in Philippines BUY
ECONOMIC HIGHLIGHTS
Australia : Drop in unemployment
Indonesia : Central bank faces dilemma
NEWS HIGHLIGHTS
LBS Bina: To jointly undertake RM2.2bil project in China
AirAsia: Seeks digitalisation to boost ancillary income
S P Setia : In no rush to develop I&P land
Mudajaya : Secures RM32mil settlement related to Tg Bin power plant
DISCLAIMER:
The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.
****************************************************************************************************************************************************************************************************************************************************************************************************************
DISCLAIMER:
This message may contain confidential and privileged information for its intended recipient(s) only. If you are not an intended recipient, you are hereby notified that any review, dissemination, and distribution, printing or copying of this message or any part thereof is strictly prohibited. Please delete the entire message and inform the sender of the error. Any opinions, conclusions and other information in this message that are unrelated to official business of AmBank Group are those of the individual sender and shall be understood as neither explicitly given nor endorsed by AmBank Group.
****************************************************************************************************************************************************************************************************************************************************************************************************************
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.