Equity Analysis /
Malaysia

MY : Sime Darby Bhd - Near-term headwinds to persist

    Mohd Shanaz Noor Azam
    Mohd Shanaz Noor Azam

    Technology Analyst

    CGS-CIMB
    25 May 2022
    Published by

    9MFY6/22 results missed expectations at 67% of our and 68% of Bloomberg consensus FY22F NP due to weaker-than-expected 3Q industrial earnings. We see a challenging near-term outlook for Sime in view of the extended lockdowns in China, inflationary cost pressures, and supply chain disruption. FY22-23F EPS cut by 3-6%. Downgrade to Hold, with a lower TP of RM2.40.