KUALA LUMPUR: HLIB Research is keeping its buy call on Sime Darby Bhd following the conglomerate's announcement that its wholly-owned property arm has signed an MoU with MMC Port Holdings Sdn Bhd, and Adani Ports and Special Economic Zone Ltd (APSEZ), to undertake a feasibility study in developing an integrated port on Carey Island. The research house said that Sime Darby is expected to benefit greatly should the deal materialise. "While the feasibility study of the development is still at the preliminary stage and details remain sketchy, we are of the view that Sime Darby will emerge as the main beneficiary if the new port development materialises, given its vast landbank of more than 11,000 hectares in Carey Island, at low cost," HLIB Research wrote in its note. The research house said it is keeping a positive view on Sime Darby, with a target price of RM10.06 in light of additional factors like its plan to spin-off the plantation and property businesses, the recent completion of private placement, and anticipated better quarters for the company's plantation and property units.

Source: New Strait Times April 04, 2017 02:26 UTC