Sime Darby Bhd

The Edge FD Top Pick 2017

Sime Darby Bhd, which recently saw Tan Sri Abdul Wahid Omar take up the helm of its controlling shareholder, Permodalan Nasional Bhd (PNB), is set to benefit from a  proposed corporate restructuring exercises.

“The expectation is that [Wahid] will unlock value [via] restructuring,” a head of research said.

PNB had a 52.98% stake in Sime Darby as at Nov 30, 2016, according to the group’s website.

Sime Darby was also highlighted as one of CIMB Research’s big cap picks in their strategy note on Dec 2.

“We expect the share price to rerate on potential plans to unlock value and better earnings prospects in view of the higher crude palm oil and coal prices in the future quarters,” CIMB Research said.

Shares in Sime Darby have shot up from an opening price of RM8.10 this year to RM8.55 at market close last Friday, suggesting investors had already begun pricing in expectations on the stock. — By Samantha Ho