Sime Darby-linked counters on upward trend

-A +A

KUALA LUMPUR (Dec 7): Shares in Sime Darby Plantation Bhd (SD Plantation) rose as much as 4.72% as it led other group members, Sime Darby Bhd and Sime Darby Property Bhd (SD Property), on an upward trend in active trade this morning.

As at 10.30am, SD Plantation was up 18 sen or 3.7% at RM5.05 after about 1.86 million shares were traded.

Meanwhile, Sime Darby Bhd rose as much as 2.27% to its highest so far this morning at RM2.25.

As at 10.30am, Sime Darby shares were up 1 sen or 0.46% at RM2.21 after about 6.95 million shares changed hands.

As for SD Property, its shares were up as much as 5.17% to its highest so far this morning at RM1.22.

As at 10.30am, SD Property went up 5 sen or 4.31% at RM1.21 with a volume of 7.97 shares.

SD Plantation and SD Property both had dismal openings when the three counters were listed on Nov 30 as separate entities following the de-merger exercise.

In a note Nov 29, Affin Hwang Capital Research had initiated coverage on SD Plantation and said it believe the stock was already accorded a PE premium, taking into account its size, status and trading liquidity.

"In view of this, we initiate coverage on SD Plantation with a Hold rating and 12-month TP of RM5.35, based on 25x 2018E core EPS.

"We believe that share price is fairly valued at current level against the reference-listing price of RM5.59," it said.