Company Update � Sime Darby (SELL, maintain)

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Company Update � Sime Darby (SELL, maintain) - More asset monetisation SIME has just announced the disposal of 805 acres of land in Semenyih for RM428.8m and the purchase of 768.5 hectares of plantation land from I&P Group Sdn Bhd for RM106.7m, essentially swapping property development land for plantation estates. Completion of its placement, more asset disposals and the retention of profits should help to lower the debt to equity ratio towards the group�s target level of 0.3x. We are keeping our FY17-19E net profit forecasts unchanged, but we cut our EPS forecasts by 4% to adjust for the placement exercise. Maintain SELL with new TP of RM6.74.

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Economy � ASEAN Outlook � Weekly Wrap - Philippines drove Asean manufacturing PMI in September

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