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Moolah
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Posting #31: Tue Jul 29th, 2008 13:11 |
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Much weakness noted from early planters earnings!!!!!!!!!!
Cepatwawasan.
Cepatwawasan Group Bhd (8982.KU) - Malaysia
2nd quarter ended June 30:
Figures are in Ringgit (MYR).
2008 2007
Revenue 72,123,000 48,466,000
Pretax Profit 16,046,000 11,818,000
Net Profit 12,284,000 8,896,000
Earnings Per Share 5.70 Sen 4.13 Sen
Dividend 2.00 Sen Omitted
6 months ended June 30:
Revenue 132,421,000 83,411,000
Pretax Profit 34,915,000 17,383,000
Net Profit 27,026,000 12,897,000
Earnings Per Share 12.54 Sen 5.99 Sen
Dividend 2.00 Sen Omitted |
vs
Cepatwawasan Group Bhd (8982.KU) - Malaysia
1st quarter ended Mar. 31:
Figures are in Ringgit (MYR).
2008 2007
Revenue 60,298,000 34,945,000
Pretax Profit 23,033,000 5,565,000
Net Profit 18,906,000 4,001,000
Earnings Per Share 8.77 Sen 1.86 Sen
Dividend Omitted Omitted |
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TH Plantations.
TH Plantations Bhd (5112.KU) - Malaysia
2nd quarter ended June 30:
Figures are in Ringgit (MYR).
2008 2007
Revenue 67,787,000 36,560,000
Pretax Profit 32,790,000 14,733,000
Net Profit 22,923,000 11,484,000
Earnings Per Share 11.69 Sen 5.86 Sen
Dividend 0.10 Sen Omitted
6 months ended June 30:
Revenue 133,395,000 63,938,000
Pretax Profit 71,264,000 27,410,000
Net Profit 51,634,000 20,722,000
Earnings Per Share 26.33 Sen 10.57 Sen
Dividend 0.10 Sen Omitted |
vs
TH Plantations Bhd (5112.KU) - Malaysia
1st quarter ended Mar. 31:
Figures are in Ringgit (MYR).
2008 2007
Revenue 65,608,000 27,378,000
Pretax Profit 38,474,000 12,677,000
Net Profit 28,710,000 9,238,000
Earnings Per Share 14.64 Sen 4.71 Sen
Dividend Omitted Omitted |
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And with CPO still falling..... earnings 'expectations' should probably be much lower!
And the delima?
The money they are making ain't too shabby now!
____________________
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random
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Posting #32: Wed Jul 30th, 2008 03:30 |
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interesting.. do both this planters sell forward their palm oil?
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MooFassa
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Posting #33: Thu Jul 31st, 2008 01:03 |
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Americans show growing appetite for palm oil
By Ooi Tee Ching Published: 2008/07/30
The US could buy a million tonnes this year, says the Malaysian Palm Oil Council, adding that so far in the first half of 2008, Malaysia has shipped more than 450,000 tonnes there
CONSUMERS in America are increasingly accepting palm oil's health benefits, as seen in the rise of shipments to the US, according to the Malaysian Palm Oil Council (MPOC).
"Palm oil nutrition awareness is gaining momentum there," MPOC deputy chief executive officer Dr Kalyana Sundram told Business Times in an interview in Petaling Jaya recently.
Palm oil in its natural form does not contain any trans fat and thus, is a healthy alternative fat for making bakery shortenings, confectionery fats and margarine that go into baked and processed foods like chocolates and cookies.
In California, Governor Arnold Schwarzenegger announced that from January 1 2010, all 88,000 restaurants in the state will be prohibited from using oil, margarine and shortening containing trans fats. Retail baked goods have an additional 1-year grace period until January 1 2011. Packaged food, however, are exempted.
In New York, all bakeries and restaurants in the city have since July 1 been ordered to stop using hydrogenated oils in crackers, candies, cookies, snack foods and deep-fried desserts. Philadelphia and Seattle are two other cities to have done the same.
The rising palm oil consumption in the US is helped, in part, by the US government's move to mandate declaration of saturated fat and trans fat levels separately on nutritional labels from January 1 2006.
According to the US Food and Drug Administration (FDA), eating saturated fat and trans fats raises low-density lipoprotein cholesterol levels. This means, trans fats - listed on food labels as partially hydrogenated vegetable oil - can raise bad cholesterol and lower healthy cholesterol, increasing the risk of heart attacks.
Many food manufacturers in the US add hydrogen, in the presence of a chemical catalyst, to soya oil and canola to harden them into bakery fats. Hydrogenation increases the melting point of fats and gives food a longer shelf life but it results in harmful trans fats.
The FDA warned that these artificial trans fat is so common that the average American eats about 2kg of artery-clogging trans fat in a year.
Palm oil, on the other hand, is a healthier choice for use in processed food because it is not genetically modified and does not contain harmful trans fat.
Rising palm oil consumption in the US could also be attributed to a patented fat blend that uses up to 50 per cent palm oil, discovered by Malaysian Palm Oil Board (MPOB) and Brandeis University biomedical scientists Dr Kalyana Sundram and Dr K.C. Hayes, 13 years ago.
They had since licensed US Nasdaq-listed Smart Balance Inc to market the patented blend in America.
Last year, Smart Balance posted US$160 million (RM521.60 million) in margarine sales alone. While it is not the No.1 margarine brand in the US, Smart Balance is fast eating into its rivals' market share because the patented blend is proven to help improve cholesterol ratios.
"Since 1996, Smart Balance has been paying royalty to MPOB and Brandeis University for the patented blend. This will expire in 2015," Dr Kalyana Sundram said.
When asked to estimate America's increasing appetite for Malaysian palm oil, he replied: "This year, the US could buy a million tonnes. So far, in the first half of this year, we've shipped more than 450,000 tonnes there.
"A million tonnes is not much because it is less than three per cent of the total edible oils consumption there. There is still tremendous growth potential."
Palm oil is richer in mono-unsaturated and poly-unsaturated fatty acids than any other saturates, even more than the average olive oil. When it comes to blood cholesterol, palm oil is scientifically proven to be just as heart healthy as olive oil.
In Malaysia, fastfood outlets like Dunkin' Donuts, Burger King, McDonald's Corp, Wendy's, Kenny Rogers Chicken Roasters, Starbucks, A&W, KFC and Pizza Hut have long been using trans fat free palm oil in their food preparation.
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MooFassa
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Posting #34: Thu Jul 31st, 2008 06:41 |
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Thursday July 31, 2008
CPO seen to stay above RM2,000
By HANIM ADNAN
PETALING JAYA: Crude palm oil (CPO) is unlikely to dip below RM2,000 per tonne this year despite the price setback that dragged the commodity below its support level of RM3,000 on Tuesday.
To date, CPO has dropped by 33% from its record price of RM4,486 per tonne in March.
The benchmark third-month contract for October delivery rebounded to close RM23 higher at RM2,992 yesterday. Spot month August contract lost RM12 to RM2,988 but September rose RM20 to RM2,989 per tonne.
Aseambankers analyst Ong Chee Ting said the previous rallies, with prices hitting RM3,500 to RM4,400 per tonne, were “unrealistic”, given the ballooning CPO stockpile, weaker exports and thin volume traded on the futures market.
“The current market correction will put CPO on a stable footing. It is now at a US$300 discount to rival soy oil, making it more attractive for export,” he said.
Ong said there could be a technical rebound, with CPO prices trading higher at RM3,100 to RM3,200 per tonne before stabilising at RM2,600 to RM2,800 per tonne for the rest of this year.
Citi Investment Research said further downside to CPO price would be limited, as the underlying demand still looked strong.
“New demand will emerge from the food and biofuel sectors. Once prices fall to lower levels, biodiesel production may become viable again,” it added.
Citi said CPO prices would trend upwards after exports started to pick up again.
It added that exporters expected strong buying from the Middle East in the run-up to the fasting month of Ramadhan while India would start stocking up for Deepavali.
Year to date, the CPO prices have averaged about RM3,507 per tonne.
On the CPO stockpile, the research unit said: “As Malaysia enters into seasonally high production months in the second half of the year, average monthly stock will remain close to two million tonnes over the next three months.”
However, the CPO inventory level is expected to trend downwards in the fourth quarter on better export prospects.
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MooFassa
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Posting #35: Fri Aug 1st, 2008 13:41 |
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KUALAsian CPO Ends At Fresh Closing Low For 2008; Dn 3.3%A LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives exchange ended 3.3% lower Friday, at a fresh closing low for this year, on pre-weekend profit-taking and spillover impact of weak crude and soyoil, trade participants said.
The benchmark October contract on Bursa Malaysia Derivatives ended MYR100 lower, at MYR2,950 a metric ton, after reaching an intraday low of MYR2,935.
"Traders are rushing for the exits as if there is a fire inside a movie theater," said a senior trading executive at a Singapore-based trading company.
He said the selling is linked to a broad-based global commodities selloff.
A broker in Kuala Lumpur said that in early trade CPO futures had recovered close to MYR200 since touching the year's lows two days earlier. "It is now time for profit-taking," the broker said before the slide began in the morning session.
Traders said prices couldn't be sustained above the crucial psychological mark of MYR3,000/ton.
The October contract has ended below MYR3,000/ton for three of the last four trading days.
The general perception is that lower prices are here to stay, so traders aren't holding on to positions for long, said a Kuala Lumpur-based trader.
High inventories are also weighing on prices.
Malaysia's end-month palm oil stocks may still be above 2.0 million metric tons as of July 31, despite a surge in export shipments, as higher production is boosting supply, trade officials said.
The on-month rise in Malaysia's July palm oil production is widely estimated by growers and exporters at 5%-10%.
Malaysia would need to export nearly 1.5 million tons of palm oil per month to offset rising production and diminish stock levels, said M.R. Chandran, Group Energy Advisor for Platinum Energy, a palm oil consultancy.
Light, sweet crude for September delivery settled $2.69, or 2.1%, lower at $124.08 a barrel Thursday on the New York Mercantile Exchange. For the month of July, it chalked up a loss of $15.92, the biggest monthly dollar drop since crude oil started trading on the Nymex.
December soyoil finished 2 points higher Thursday on the Chicago Board of Trade at 59.50 cents/pound.
At 1059 GMT, December soyoil was 83 points lower in electronic trading on the e-CBOT at 58.67 cents.
A total of 10,029 lots of CPO were traded on the BMD, down from 12,067 lots Thursday. Open interest stood at 54,911 lots, down from 58,317 lots. One lot comprises 25 tons.
Cash palm olein for October/November/December traded between $1,020/ton and $1,035/ton, said a trader in Singapore.
Cash CPO for prompt shipment was last offered MYR100 lower at MYR2,090/ton.
Month Close Previous Change High Low
Aug 08 2,970 3,050 Dn 80 2,980 2,970
Sep 08 2,943 3,044 Dn 101 3,007 2,939
Oct 08 2,950 3,050 Dn 100 2,994 2,935
Nov 08 2,949 3,050 Dn 101 2,995 2,935 |
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MooFassa
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Posting #36: Wed Aug 6th, 2008 08:55 |
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06-08-2008: CPO prices slump to nine-month low, demand softening
by Chong Jin Hun
KUALA LUMPUR: Malaysian crude palm oil (CPO) futures fell to a nine-month low yesterday, in tandem with the decline in crude oil prices, on concerns that slower global economic growth will trigger less demand for the commodities.
Palm oil for September 2008 delivery on the Malaysia Derivatives Exchange fell as much as RM180 or 6.2% to RM2,710 per tonne at 4.36pm before closing at RM2,750 per tonne, down RM140 or 4.8%. It had earlier touched a high of RM2,790 a tonne at 10.36am.
CPO futures for October and November deliveries also fell RM140 per tonne respectively to RM2,750 while for December delivery, the price dropped RM146 per tonne, also to RM2,750.
The decline in local palm oil rates also came amid a significant slide in prices of vegetable oil in China, the world’s biggest consumer of cooking oils as prices of crude oil continued its downward trend.
A dip in crude oil rates essentially reduces demand for commodities like palm oil and soybean for the production of biofuel as an alternative energy source to counter costlier hydrocarbon fuel.
“There are more and more signs of an end to the commodity boom. A slower global economy and sky-high commodity prices seemed to have dampened demand for commodities.
“With the downtrend in commodity prices, Malaysia could lose its buffer against its already moderating electrical and electronics export growth,” Bank Islam Malaysia Bhd senior economist Azrul Azwar told The Edge Financial Daily yesterday.
Palm oil ranks second among Malaysia’s exports, accounting for 7.6% of the country’s foreign sales in June this year. The commodity fell below the RM3,000-a-tonne level last week in line with the declining crude oil prices.
A rebound in palm and crude oil prices is unlikely in the near term. HLG Asset Management Sdn Bhd chief executive officer Richard Lin anticipated palm oil rates to hit RM2,500 in the next few months as the commodity tracks declining prices of soybean.
This comes amid softening demand for for soybean in China, and the anticipation of higher supply of the commodity in the US as the weather there becomes more accommodative for a better harvest.
At the same time Lin expects crude oil prices to soften to US$100 a barrel by the end of this year, a reflection that supply and demand fundamentals are gaining a upper hand in dictating crude oil rates as US authorities curb speculation in oil trade.
Crude oil for September delivery on the New York Mercantile Exchange shed US$2.61 to US$118.80 a barrel at 7.36pm yesterday.
“This is to reflect fundamentals of demand which is expected to slow as consumers cut back on consumption due to slower economic growth,” said Lin, who is less optimistic on the performance of shares in plantation companies.
“Shares of plantation companies are definitely on the downtrend as the next level for CPO price is at RM2,500 a tonne. It will not be good for companies which sell their palm oil at spot prices. But it will be good for companies which sold their palm oil based on futures prices as they would have booked in the their rates before the prices collapse,” added Lin.
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MooFassa
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Posting #37: Wed Aug 6th, 2008 09:04 |
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06-08-2008: Plantation stocks take a hit
by Surin Murugiah & Chong Jin Hun
KUALA LUMPUR: Falling crude palm oil (CPO) prices triggered a selloff of plantation stocks on Bursa Malaysia yesterday, dragging the Kuala Lumpur Composite Index down by 20 points.
Analysts said there may be more selling in the coming weeks because CPO prices were expected to correct further from the recent all-time highs along with other commodities like crude oil.
“With CPO prices expected to continue to drop till the weekend, investors should be prepared for the KLCI to fall further. It could dip well below 1,100 points,” said Jupiter Securities Sdn Bhd head of research Pong Teng Siew.
Pong said he had anticipated some profit-taking at the beginning of the week but yesterday’s fall was sharper than expected.
The KLCI lost 19.82 points, or 1.73%, to 1,128.86 at the close. The index fell to an intra-day low of 1,123.67 in late afternoon before recovering slightly.
The plantation index on Bursa Malaysia tumbled 354.05 points to 5,909.44 as plantation stocks, including Kuala Lumpur Kepong Bhd, IOI Corporation Bhd and Sime Darby Bhd took a beating.
Among regional markets, Hong Kong’s Hang Seng Index fell 2.51% to 21,949.75 points, the Shanghai Composite Index lost 1.86% to 2,690.75 points, the Singapore Straits Times Index slid 0.54% to 2,860.51, South Korea’s Kospi dropped 0.49% to 1,535.54 points and Japan’s Nikkei 225 fell 0.14% to 12,914.66 points.
Crude oil prices have dropped nearly 20% to slightly below US$119 (RM392.70) per barrel since hitting a record high of US$147.27 on July 11. Light, sweet crude oil for September delivery on the New York Mercantile Exchange shed another US$2.61 to US$118.80 a barrel as at 7.36pm yesterday.
In overnight trade, crude for September delivery fell US$3.69 to US$121.41 on softening demand as a result of the slower US and global economies.
Crude oil prices continued to ease despite continuing concerns in the Middle East, particularly over Iran, and as tropical storm Edouard tore through the heart of the Gulf of Mexico’s oil and gas industry, albeit causing no major disruption to production.
HLG Asset Management Sdn Bhd chief executive officer Richard Lin said oil prices may now be on track to reflect fundamentals of demand, which is expected to slow as consumers cut back on consumption.
He also expected the CPO price to ease to RM2,500 in the next few months as the commodity tracks declining prices of soybean.
CPO futures for October and November delivery fell RM140 to RM2,750 per tonne.
Bank Islam Malaysia Bhd senior economist Azrul Azwar told The Edge Financial Daily that cracks were appearing in the commodity boom because of the global economic slowdown and this was not necessarily good news for crude oil and CPO-producing countries like Malaysia.
Jupiter’s Pong said the Malaysian Palm Oil Board statistics for July that are due for release by this weekend could prove vital, as developments over the last two weeks had been less than encouraging.
“We have seen reports of millers turning fresh fruit bunches away as they worry about high CPO inventories, so that is not a good sign.”
He said commodities such as steel would gradually suffer a similar fate as some surplus was expected to come out from Vietnam, where demand for steel had dwindled due to the slowdown in construction.
On Bursa Malaysia yesterday, losers thumped gainers 425 to 170 while 223 counters were traded unchanged. A total of 548.01 million shares valued at RM1.33 billion changed hands.
Among palm planters, KLK fell 80 sen to RM12.40, IOI Corp was down 50 sen to RM5 while Sime Darby and Batu Kawan lost 30 sen each to RM7.50 and RM8.75 respectively.
Tradewinds Plantation Bhd shed 18 sen to RM3.26, United Malacca Bhd and Asiatic Development Bhd fell 15 sen each to RM7.30 and RM6.25, respectively, while Boustead Holdings Bhd lost 12 sen to RM4.80.
MMC Corporation Bhd fell 61 sen to RM2.12 after announcing on Monday that it was buying Senai Airport Terminal Services Sdn Bhd and taking over Aliran Ihsan Resources Bhd in a deal totalling RM2.2 billion.
British American Tobacco (Malaysia) Bhd fell 50 sen to RM39.75, KPJ Healthcare Bhd dropped 30 sen to RM3.20, while Lion Industries Corporation Bhd and PPB Group Bhd each fell 25 sen to RM2.34 and RM8.95, respectively.
The gainers were led by Nestle (Malaysia) Bhd which rose RM1.25 to RM28. Tanjong Plc added 40 sen to RM13.70, DFZ Capital Bhd was up 38 sen to RM4.90, and Berjaya Media Bhd and UMS-Neiken Group Bhd gained 16 sen each to RM1.16 and 58 sen.
Among the heavyweights, Tenaga Nasional Bhd added 15 sen to RM8.45, Telekom Malaysia Bhd rose four sen to RM3.46 while Malayan Banking Bhd fell five sen to RM7.80.
Meanwhile, Reuters reported that Malaysia and Indonesia will cooperate in a biofuel development programme, and may standardise production.
Plantation Industries and Commodities Minister Datuk Peter Chin said in Jakarta that Malaysia hoped to sign an MoU with Indonesia.
Speaking to reporters after meeting Indonesian Mines and Energy Minister Purnomo Yusgiantoro, Chin said Malaysia had not sold biofuel domestically and most of its output was exported to Europe and the US.
The two countries together account for more than 80% of the world’s crude palm oil output.
Malaysia had the capacity to produce up to 1.5 million tonnes of biofuel a year, but produced only 100,000 tonnes, Chin said.
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random
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Posting #38: Thu Aug 7th, 2008 02:33 |
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Bull run end already? 
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MooFassa
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Posting #39: Thu Aug 7th, 2008 09:16 |
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07-08-2008: Plantation index falls to 11-month low
by Chong Jin Hun
KUALA LUMPUR: Plantation stocks continued to face heavy selling yesterday despite a recovery in crude palm oil (CPO) futures and the broader equity market.
The benchmark Kuala Lumpur Composite Index (KLCI) held its own and stayed in positive territory, despite the selldown in plantation stocks, which pushed the plantation index to an 11-month low.
Analysts are maintaining an underweight call on the plantation sector as they believe crude palm oil futures will fall further before recovering to about RM3,000 per tonne next year.
Shares of plantation firms were among the biggest losers, accounting for more than half of the day’s top 10 decliners. These include Kuala Lumpur Kepong Bhd which fell 50 sen to a 10-month low of RM11.90, and Sime Darby Bhd which lost 35 sen to RM7.15, a nine-month low.
IOI Corporation Bhd, the most active stock with 49.26 million units traded, dropped 14 sen to its lowest in 13 months at RM4.86, while Asiatic Development Bhd hit its nine-month low of RM6, down 25 sen.
CPO for September delivery added RM42 to RM2,792 a tonne while both October and November deliveries settled RM40 higher at RM2,790 a tonne. CPO futures fell to a nine-month low on Tuesday, in tandem with the decline in crude oil prices, on concerns that slower global economic growth will lower demand for the commodities.
As at 8.36pm, September delivery of light sweet crude oil rose eight cents to US$119.25 (RM393.53) a barrel.
Some analysts said the transient positive sentiment that boosted the overall market yesterday stemmed mainly from huge overnight gains on Wall Street after US policymakers kept the key interest rate unchanged at 2%.
They warned that advances in US stocks may be short-lived and the surge in prices could be a knee-jerk reaction to the latest monetary policy decision. Ahead, investors would have to face a global economic slowdown.
“We think any short-term rally this month will be unsustainable, and investors should sell into strength. We continue to believe the market will trade sideways with downside bias, with the risk of under-shooting to our 1,100-1,150 fundamental buy-zone.
“Whether this bounce (in the KLCI) can be sustained will be all on the shoulders of the Dow Jones Industrial Average tonight (last night). As of now, the KLCI chart is irrelevant in comparison with the importance of the Dow,” HLG Securities Sdn Bhd wrote in a note yesterday.
On Bursa Malaysia yesterday, the KLCI closed up 4.73 points, or 0.4 %, to 1,133.59, recouping a fraction of its 20-point loss on Tuesday. The rise was mainly due to Genting Bhd and Bumiputra-Commerce Holdings Bhd which gained 20 sen each to RM5.95 and RM8.95, respectively.
TM International Bhd and MISC Bhd added 15 sen each to RM6.45 and RM9, respectively.
The 100-stock index earlier rose to an intraday high of 1,138.18 and sank to a low of 1,129.87. Meanwhile, the 41-member plantation index tumbled 141.17 points, or 2.4%, to finish at 5,768.27.
A total of 504.62 million shares valued at RM1.15 billion were traded. There were 324 gainers and 273 losers. Top gainer Malaysia Smelting Corporation Bhd added RM1.20 to RM7.75 while top loser Nestle (M) Bhd shed RM1 to RM27.
“The KLCI is undergoing a slightly softer period for now. Therefore, investment opportunities are for the short term and some nibbling on weakness may result in investors trying to make a swift and marginal profit.
“Investors should adopt a tight stop-loss procedure on stocks that they purchase as the world markets may also be on a ‘dead-cat bounce’ rebound. Any large rebound would attract foreign and longer-term bearish selling,” Aseambankers Malaysia Bhd said in a note yesterday.
Meanwhile, the ringgit fell to a six-month low of 3.2775 against the US dollar yesterday. Analysts said the decline stemmed from the anticipation that Malaysia’s exports would weaken due to lower CPO prices.
CPO, the second-largest component of local exports, is deemed a buffer to the nation’s already moderating electrical and electronic exports.
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MooFassa
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Posting #40: Thu Aug 7th, 2008 09:25 |
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07-08-2008: Plantations remain underweight
KUALA LUMPUR: As crude palm oil (CPO) prices are expected to stay about RM3,000 per tonne level next year, analysts are maintaining an underweight call on the plantation sector.
Shares of plantation companies would likely to be on the downtrend as some analysts believe the next level for CPO price is at RM2,500 a tonne.
As such, Sime Darby Bhd’s majority spot selling strategy would not augur well in the current declining CPO price.
“Athough Sime is on track to achieve its 9% to 10% fresh fruit bunches production growth target for financial year ended June 30, 2008, we believe Sime’s majority spot selling strategy in recent quarters would not bode well for it in the current falling CPO price environment,” RHB Research said in its note.
The research house added that Darby Sime maintained its forward selling policy of a maximum of 100% of next month’s production, 80% the following month and 50% in the third month.
“This works out to be an average 75% maximum of three months production being sold forward. However, we believe Sime has not been doing much forward sales over the last few quarters, which would obviously not bode well in the current falling CPO environment,” it said.
Two days ago, Malaysian CPO futures fell to a nine-month low in tandem with the falling crude oil prices, on worries that slower global economic growth will dampen demand for the commodities.
The decline in local palm oil rates also came amid a significant slide in prices of vegetable oil in China, the world’s biggest consumer of cooking oils as prices of crude oil continued its downward trend.
“For now, we are keeping our CPO price assumptions of RM3,000 per tonne for 2009 and RM2,800 for 2010,” AmResearch said in its note yesterday.
RHB Research reiterated its CPO price assumptions of RM2,850 per tonne for FY2008, RM3,100 a tonne for FY2009 and RM2,800 a tonne for FY2010.
The research house added that based on its revised forecasts, its sum-of-parts-based fair value for Sime Darby has been reduced to RM7.00 from RM7.15 based on an unchanged price over earnings targets of 12 times calendar year (CY) 2009 for Sime Darby’s plantation segment.
RHB Research, which maintained an underweight call on Sime Darby, has also based the fair value for Sime on an eight times CY2009 for its heavy equipment and energy and utilities divisions, and a seven times CY2009 for its motor and property divisions.
It had revised its forecasts for Sime Darby downwards by 1.8% for FY2008 and by 2.5% to 3% for FY2009 to FY2010 after accounting for a reduction in earnings before interest and tax (Ebit) margins for property division, weaker revenue growth and lower EBIT margins for motor division, and windfall taxes for the power division.
Sime Darby dropped 35 sen to close at RM7.15 yesterday.
http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_9b296de7-cb73c03a-21447f00-ac3ea7fb
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