Sime Darby aims to double market cap to RM100bil by 2016

KUALA LUMPUR: Malaysia-based multinational conglomerate, Sime Darby Bhd, plans to almost double its market capitalisation to RM100bil on Bursa Malaysia by 2016 from RM57.73bil recorded to date.

In line with the five-year strategy blueprint for financial year 2012 until 2016, Sime Darby would continue to expand and strengthen its position in diversified business activities such as plantation, industrial, motor, property and energy and utilities.

Executive Vice-President Group Strategy and Business Development Alan Hamzah Sendut said from the financial perspective, the company has recorded a lower financial result due to volatility in global commodity prices.

Sime Darby's profit before interest and tax for the nine-month period ended Mar 31, 2014 slipped 16% to RM2.922bil from RM3.478bil recorded in the same period last year. 

"However, our production (palm oil) is increasing, and volatility in the crude palm oil prices is beyond our control," he told reporters on the sidelines of Invest Malaysia 2014.

Alan also said the company has outlined strategic thrusts for each of the division under the group. 

"For the plantation division, we will be looking at land bank expansion. We are looking for opportunities to acquire land outside Malaysia," he added.

Sime Darby Bhd registered a pre-tax profit of RM1bil in its third quarter ended March 31, 2014 compared with RM934.74mil registered in the same period a year earlier.

The group, however, posted a lower revenue of RM10.295bil for the quarter compared with RM10.84bil in the same period last year, while earnings per share was higher at 14.09 sen against 11.5 sen previously.

The conglomerate attributed the quarter's higher profit to improved results from the plantation division and a lower effective tax rate. - Bernama

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