KUALA LUMPUR (July 11): CIMB Research has maintained its Trading Buy rating on Sime Darby Bhd at RM9.94 with a target price of RM10.90 and said it was more optimistic on the Battersea Power Station project after its site visit as it saw new launches sprouting up around the vicinity, selling at £1,000-1,500psf and displaying strong demand from Asian buyers.
In a note Tuesday, the research house had said its revised estimate suggested that this project could fetch a higher profit margin of around 25% due to higher selling prices.
“However, this will not flow through to earnings until FY6/15-16.
“We maintain our Trading Buy rating (target price based on 10% discount to SOP) due to our near-term positive view on CPO price.