[%FWqo%] 
Research by HLIB
Buy - TP RM3.05

"Headline affected by impairments"

Sime posted 4QFY24 core PATMI of RM367m (-11.8% QoQ; -33.8% YoY) and FY24 at RM1.5bn (+9.8% YoY) – below HLIB’s expectation (94%), but within consensus (105%). We expect Sime to sustain its FY25 performance, driven by its Industrial segment with RM4.25bn orderbook and full FY contribution from UMW, cushioning the deteriorating Motor segment. We maintain our BUY recommendation with a lower TP of RM3.05 (from RM3.28), based on 15% discount to SOP of RM3.58.

Analyst:
Daniel Wong
[%tRrZ%]

$KLSE-SIME 
Research by HLIB
Buy - TP RM3.05

"Headline affected by impairments"

Sime posted 4QFY24 core PATMI of RM367m (-11.8% QoQ; -33.8% YoY) and FY24 at RM1.5bn (+9.8% YoY) – below HLIB’s expectation (94%), but within consensus (105%). We expect Sime to sustain its FY25 performance, driven by its Industrial segment with RM4.25bn orderbook and full FY contribution from UMW, cushioning the deteriorating Motor segment. We maintain our BUY recommendation with a lower TP of RM3.05 (from RM3.28), based on 15% discount to SOP of RM3.58.

Analyst:
Daniel Wong
kkwong@hlib.hongleong.com.my