RHBInvest Research

Sime Darby:

• 2QFY11 Results/Briefing Note
• Core net profit rose 22% yoy in 1HFY11 on the back of an 18% yoy rise in turnover, coming mainly from higher margins in the heavy equipment and motor divisions, offset slightly by lower margins in the plantations and energy & utilities divisions.
• Target price is reduced to RM10.60 (from RM11.10). Maintain Outperform.

Corporate Highlights

Ann Joo: Underperform

• 4QFY10 Results/Briefing Note
• Net loss in 4QFY12/10 due to lower margins
• No change to our forecasts. Fair value is RM3.02 based on 10x FY11 fully diluted EPS of 30.2sen.