AmInvestment maintains Buy on Sime Darby, unchanged FV RM10.58

KUALA LUMPUR: AmInvestment Bank Research is maintaining a Buy on Sime Darby with an unchanged fair value of RM10.58 a share – based on a 15% discount to its sum-of-parts value of RM12.45 a share.

It said on Sime Darby’s 2QFY15F was below expectations. Core net profit was RM397mil (–47% on-year, -9% on-quarter), bringing the 1HFY15 total to RM834mil – accounting for only 32% and 29% of its and consensus estimates, respectively. Its net profit of RM938mil (including exceptional items) accounts for 38% of its internal target of RM2.5bil.