[%YeaI%] 
Research by Public
Neutral - TP RM2.45

"Dragged by China Operations"

Sime Darby reported a lower net profit of RM83.0m (-86.5% YoY, -76.2% QoQ) for the 4QFY24, mainly due to one-off impairments, provisions, and losses at the Motors Mainland China operations, as well as higher finance costs and
deferred tax provisions. Excluding non-operating items, the Group’s estimated core net profit stood at RM376.0m, bringing the 12MFY24 core net profit to RM1,275.0m (+15.4% YoY). The results were below both our and consensus
estimates, making up 90.0% and 91.4% of full year forecasts, respectively. This was largely due to weaker-than-expected performance at the Motors Mainland China operations. We cut our FY25-26F earnings forecasts by 10-14%, factoring in lower revenue and higher operating costs. Consequently, our sum-of-parts (SOP) based target price is revised to RM2.45 (from RM2.73). A second interim dividend of 10 sen per share was declared, bringing total dividend for the year to 13 sen per share (FY23: 13 sen per share). We maintain a Neutral rating on Sime Darby.

Analyst:
Denny Oh
[%ZydF%]

$KLSE-SIME 
Research by Public
Neutral - TP RM2.45

"Dragged by China Operations"

Sime Darby reported a lower net profit of RM83.0m (-86.5% YoY, -76.2% QoQ) for the 4QFY24, mainly due to one-off impairments, provisions, and losses at the Motors Mainland China operations, as well as higher finance costs and
deferred tax provisions. Excluding non-operating items, the Group’s estimated core net profit stood at RM376.0m, bringing the 12MFY24 core net profit to RM1,275.0m (+15.4% YoY). The results were below both our and consensus
estimates, making up 90.0% and 91.4% of full year forecasts, respectively. This was largely due to weaker-than-expected performance at the Motors Mainland China operations. We cut our FY25-26F earnings forecasts by 10-14%, factoring in lower revenue and higher operating costs. Consequently, our sum-of-parts (SOP) based target price is revised to RM2.45 (from RM2.73). A second interim dividend of 10 sen per share was declared, bringing total dividend for the year to 13 sen per share (FY23: 13 sen per share). We maintain a Neutral rating on Sime Darby.

Analyst:
Denny Oh
research@publicinvestbank.com.my