KUALA LUMPUR (March 2): Shares of SIME DARBY BHD [] extended their gains on Friday on fund buying after it posted a strong set of results while JP Morgan Research upgraded the target price to RM11.60 from RM11.30.
At 11.14am, it was up 21 sen to RM10.14 with 6.47 million shares done.
The FBM KLCI rose 11.25 points to 1,584.70. Turnover was 619.10 million shares valued at RM549.67 million. Gainers beat losers 360 to 221 while 306 stocks were unchanged.
JP Morgan Research said Sime Darby remained its top large-cap Asean PLANTATION []s pick.
It said Sime's 2QFY12 core net profit of RM1.032 billion (up 18% on-year) came in 12% ahead of consensus expectations of RM922 million.
For 1HFY12, core profit of RM2.14 billion (up 40% on-year) represented 53% of its full-year forecast and 55% of consensus.
“Given the short-term cautiousness due to the global environment, we believe this will translate to more material forecast upgrades by the market mainly from FY13E on (Jun year-end), likely bringing consensus numbers closer to our above-market estimates.
“We have tweaked our forecast up by 3% per annum and are now ahead of consensus by 5% for FY12E and 14% for FY13E. Maintain overweight,” JP Morgan Research said.
At 11.14am, it was up 21 sen to RM10.14 with 6.47 million shares done.
The FBM KLCI rose 11.25 points to 1,584.70. Turnover was 619.10 million shares valued at RM549.67 million. Gainers beat losers 360 to 221 while 306 stocks were unchanged.
JP Morgan Research said Sime Darby remained its top large-cap Asean PLANTATION []s pick.
It said Sime's 2QFY12 core net profit of RM1.032 billion (up 18% on-year) came in 12% ahead of consensus expectations of RM922 million.
For 1HFY12, core profit of RM2.14 billion (up 40% on-year) represented 53% of its full-year forecast and 55% of consensus.
“Given the short-term cautiousness due to the global environment, we believe this will translate to more material forecast upgrades by the market mainly from FY13E on (Jun year-end), likely bringing consensus numbers closer to our above-market estimates.
“We have tweaked our forecast up by 3% per annum and are now ahead of consensus by 5% for FY12E and 14% for FY13E. Maintain overweight,” JP Morgan Research said.
