Equity Analysis /
Malaysia

MY : Sime Darby Bhd - Mixed growth prospects in FY6/23F

    CGS-CIMB
    17 August 2022
    Published byCGS-CIMB

    FY6/22 core net profit was 4%/6% above our/consensus estimates due to better-than-expected industrial division margin recovery in 4QFY6/22. Sime declared a second interim DPS of 7.5 sen for 4QFY6/22, bringing FY22F DPS to 11.5 sen (5% yield), beating our expectation of 10.1 sen. A challenging operating outlook in China could dampen profitability, but potential non-core assets divestment should support FY6/23F dividend yield.