Sime Darby’s automotive business is well-positioned to ride on the rise of the BMW brand in China, while industrial earnings should remain robust from expectations of a structural improvement in commodity prices and a pick-up in construction activities.
PETALING JAYA: The time could be right for investors to re-look at Sime Darby Bhd
, given that things have improved macroeconomically.
Sime Darby’s automotive business is well-positioned to ride on the rise of the BMW brand in China, while industrial earnings should remain robust from expectations of a structural improvement in commodity prices and a pick-up in construction activities.
“Due to the improving macroeconomic environment, it is now the right time for investors to re-look at Sime Darby, which offers exposure to cyclical sectors – automotive, construction, and mining – in the Asia-Pacific, “ said RHB Research, which has upgraded the company to a “buy” from a “neutral.”
Calling it the “Asian bellwether”, the research house said Sime Darby would benefit from the improving macroeconomic environment, as countries it has operations in recover from Covid-19-related lockdowns.
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