Latest news with #Sime
The Star
27-05-2025
- Business
- The Star
FBM KLCI slips for second day amid mixed regional markets
KUALA LUMPUR: The FBM KLCI closed lower for the second consecutive session, weighed down by cautious sentiment as regional markets showed mixed performances. The market barometer fell 8.14 points, or 0.53%, to 1,526.16. The index traded within a 13.48-point range, between an intraday high of 1,535.41 and a low of 1,521.93. Stocks that fell outnumbered those that rose 575 to 338, with another 474 counters unchanged. A total of 2.6 billion shares changed hands, worth RM1.85bil. On Bursa Malaysia, F&N led the decliners, slipping 30 sen to RM27, followed by Sime, down 27 sen to RM1.87, United Plantations, which eased 22 sen to RM22.78, and BLD Plantation , 20 sen lower at RM10.80. Conversely, Nestle jumped RM1.90 to RM81.50, PETRONAS Dagangan added 70 sen to RM19.80, Kuala Lumpur Kepong rose 56 sen to RM20.36 and Hong Leong Industries gained 30 sen to RM13.78. Stock market data showed that foreign investors sold a net RM61mil on Monday. Local institutions and retailers were net buyers, with RM54mil and RM7mil, respectively. Meanwhile, the ringgit was quoted at 4.2382, up 0.46% against the US dollar. Elsewhere in the region, Japan's Nikkei 225 rose 0.51%, Hong Kong's Hang Seng Index closed up 0.43%, South Korea's Kospi fell 0.27% and China's CSI 300 Index closed down 0.54%.
New Straits Times
27-05-2025
- Automotive
- New Straits Times
Sime's nine-month net profit up 9.9pct to RM1.29bil
KUALA LUMPUR: Sime Darby Bhd reported a net profit from continuing operations of RM1.29 billion for the nine months ended March 31 2025, up 9.9 per cent from RM1.17 billion in the previous corresponding period. The was mainly attributable to the higher contribution from the UMW division and a higher one-off gain on disposal of Malaysia Vision Valley land, despite lower profits from the industrial and motors divisions. The group's revenue for the nine months increased 8.2 per cent to RM52.3 billion from RM48.3 billion in the previous financial year. For the third quarter (Q3), Sime's net profit fell 43.2 per cent to RM193 million from RM340 million a year ago, due to lower earnings from all its core divisions. Its revenue fell to RM16.31 billion from RM18.84 billion previously, the group's filing to Bursa Malaysia showed. As a result, the group registered lower earnings per share of 2.80 sen compared to 5.00 sen in Q3. The group's industrial division profits fell 38.4 per cent to RM221 million during the quarter, mainly due to lower profits from Australasia. Profit from Australasia was impacted by a currency-related parts price adjustment, unfavourable weather conditions and a weaker Australian dollar against the ringgit. Its motors division profits dropped 36.7 per cent to RM114 million mainly due to lower revenue and core profit from several markets, particularly Malaysia, Hong Kong and New Zealand. The group said these markets had been impacted by weaker demand and fierce competition. UMW Holdings Bhd's profit fell 26 per cent to RM194 million mainly due to losses at the lubricants business. Sime group chief executive officer Datuk Jeffri Salim Davidson said the group continued to face external headwinds, particularly in the motors division with ongoing economic uncertainty and the rise of Chinese automotive brands increasingly dominating the market. He added that the consumer segment remains challenging amid the continuing price war and industry overproduction in China. "For the UMW division, Toyota and Perodua continue to perform well in Malaysia. "Despite the impact of the currency-related parts price adjustment, the long-term prospects for our industrial division remains positive on the back of robust mining demand. "Across the group, we remain focused on cost discipline, efficient inventory management and operational agility to navigate the current environment," he said in a separate statement. Jeffri also said as a result of the group's efforts, the reduction in inventories has resulted in a RM1.7 billion improvement to its operating cash flow for the nine months ended March 31, 2025. "While the current landscape is undoubtedly tough, our operating cash flow is positive and our balance sheet is strong, underpinned by sustained revenue. "These are fundamentals that will see us through during these choppy waters," he noted. On its prospects, the group said there is significant uncertainty in the global economic outlook after the US announced tariffs to be imposed on most countries. It added that volatility has also increased in the financial markets, affecting foreign currency exchange rates and interest rates. Amid the uncertainty, business conditions are expected to be challenging for the group's industrial and motors businesses. However, the medium to long term demand for the group's products and after-sales service from the mining industry in Australia is expected to remain robust. Sime expects the core financial performance for the financial year ending June 30, 2025 to be lower than that of the previous financial year.
New Straits Times
19-05-2025
- Business
- New Straits Times
Australia-led industrial strength powers bright outlook for Sime Darby
KUALA LUMPUR: Sime Darby Bhd's growth outlook remains bright, underpinned by resilient performance from the industrial segment, said CIMB Securities Research. The firms said Australia remains one of Sime Darby's most important growth engines, contributing 53 per cent of Sime's core profit before interest and tax (PBIT) and 33 per cent of its revenue in the financial year 2024 (FY24). Within the industrial division, it said Australian operations accounted for 77 per cent of Sime Darby Industrial's (SDI) revenue and 87 per cent of its core PBIT in FY24, up from 60 per cent and 67 per cent, respectively, in FY19. "Sime Darby Industrial (SDI) is emerging as a key growth engine fuelled by strong performance in Australia, rising mining capex, strategic commodities diversification, and growing contribution from high-margin aftersales and rental services," it said in a note. According to CIMB Securities, the SDI segment provides annuity-like returns, supported by a growing installed base and multiple machine rebuild cycles. The firm has conducted a scenario analysis to assess SDI's standalone valuation, offering an alternative basis for sum-of-parts consideration. "We estimate SDI could be worth RM10 billion to RM12 billion, based on a trailing 2024 price-to-earnings (P/E) of 15 times to 18 times — representing 69–82 per cent of Sime Darby's current market cap of RM14.7 billion. "In our view, a re-rating is warranted, underpinned by SDI's strong fundamentals, resilient earnings, and attractive margin profile. "With accelerating digitalisation, expanding aftermarket penetration, and infrastructure-driven tailwinds, SDI presents a compelling industrial pure play with monetisation potential," it said. With solid PBIT margins and a potential standalone valuation (RM10 to RM12 billion), CIMB Securities sees room for a re-rating for Sime Darby. The research firm is maintaining its "Buy" call on Sime Darby with an unchanged target price of RM3.00. "We like Sime for its commendable dividend yields of 7.0 per cent and 7.3 per cent for the calendar year 2025 (CY25) and CY26, respectively," it added.
