KLCI Stock - SIME / 4197 - 2012 Quarter 2

SIME DARBY BERHAD


My notes based on 2012 quarter 2 report (number in '000):-
- Higher profit from Plantation segment than FY11Q2 mainly due to the higher average crude palm oil (CPO) price realised of RM2,872 per tonne against RM2,692 per tonne in the previous year coupled with higher fresh fruit bunches (FFB) production

- Higher revenue and profit from Property segment primarily on account of the higher percentage of property development works completed in the various townships including USJ Heights, Bandar Bukit Raja and Ara Damansara

- Higher profit from Industrial segment than FY11Q2 include the gain on disposal of an investment of RM32.8 million and the expensing off of the acquisition-related costs incurred on Bucyrus of RM62.3 million. The strong performance of Industrial was underpinned by the robust activities in the mining, logging and construction sectors in Australasia and Malaysia whilst Singapore rebounded with the improved demand for engines and the higher delivery of its heavy equipment. The China/Hong Kong sector’s performance was however down due largely to the slowdown in the construction activities following the tightening of credits by local government policies to curb the overheating of its economy

- Higher profit from Motor segment than FY11Q2 mainly attributable to the sustained demand in all regions in addition to the dividend income

- Higher revenue and profit from Energy & Utilities segment primarily due to the recognition of deferred revenue of RM99.4 million from its power plant in Malaysia although the port operations in China were down marginally by 3.4% due to the higher costs

- Higher revenue and profit from Healthcare segment due mainly to the increase in both inpatient and outpatient visits despite the higher overheads incurred for the Ara Damansara hospital which had its soft opening on 12 January 2012

- Other businesses achieved a turnaround in results generating a profit due to the positive contribution from Tesco which registered a profit of RM10.1 million compared to a loss of RM1.8 million and the provision for impairment of an available for sale investment of RM24.3 million in the previous year

- Estimate next 4Q eps after 2012 Q2 result announced = 25639100*0.17/6009500 = 0.7253, estimate PE on current price 9.93 = 13.25(DPS 0.32)
- Estimate next 4Q eps after 2012 Q1 result announced = 0.1787*4*1.1 = 0.7863, estimate highest/lowest PE = 12.34/10.76 (DPS 0.3)
- Estimate next 4Q eps after 2011 Q4 result announced = 0.6098*1.1 = 0.6708, estimate highest/lowest PE = 13.27/9.99 (DPS 0.3)
- Estimate next 4Q eps after 2011 Q3 result announced = (0.146+0.1365)*2 = 0.565, estimate highest/lowest PE = 16.27/14.94 (DPS 0.11)
- Estimate next 4Q eps after 2011 Q2 result announced = (0.146+0.1089)*2 = 0.5098(cpo price decreasing but offset by contracts awarded), estimate highest/lowest PE = 18.22/17.01 (DPS 0.11)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1271*4*1.1 = 0.5592(ROE 3.5% per quarter with condition CPO price continue maintain high), estimate highest/lowest PE = 16.79/15.22 (DPS 0.1)
- No estimate next 4Q eps after 2010 Q4 result announced
- No estimate next 4Q eps after 2010 Q3 result announced
- Estimate next 4Q eps after 2010 Q2 result announced = 0.37, estimate highest/lowest PE = 22.22/19.59 (DPS 0.22)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.34, estimate highest/lowest PE = 26.44/23.76(DPS 0.2)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.37, estimate highest/lowest PE = 24.43/21.59 (DPS 0.2)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.34, estimate highest/lowest PE = 24.35/18.91 (DPS 0.27)

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