If Sime Darby decides to pare down its borrowings, its net gearing ratio will be reduced slightly to 0.11 times from 0.12 times. Any interest savings moving forward will be marginal.
KUALA LUMPUR: AmInvestment Research is maintaining its Buy recommendation on Sime Darby with an unchanged sum-of-parts based fair value of RM2.64 a share, pegging an FY21F PE of 11 times to its motor segment.
The research house had issued its report on Tuesday after UK's Tesco PLC announced that it had agreed to sell its entire shareholdings in Tesco Malaysia to entities under CP Group of Thailand at an enterprise value of US$700mil which includes US$600mil of net debt.
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