KUALA LUMPUR, Nov 19 ― Sime Darby Plantation Bhd (SDP) jumped seven sen to RM4.03, with 647,200 shares changing hands at 10.30am today after it posted a big jump in the third quarter (Q3) net profit.
The plantation company’s Q3 net profit tripled to RM610 million from RM190 million previously, mainly driven by the stronger upstream segment.
Revenue also surged to RM5.06 billion from RM3.18 billion in the same period last year, it told Bursa Malaysia yesterday.
Public Investment Bank also noted that SDP saw its nine-month 2021 (9MFY21) core earnings tripling to RM1.7 billion on the back of stronger earnings contribution from all core businesses.
“The results made up 80 and 84 per cent of our and consensus full-year expectations, respectively,” it said in a research note. “In view of lower production and softer crude palm oil prices in the next two months, we retain our full financial year 2021 (FY21F) earnings forecasts.”
Therefore, the research house said it is maintaining its “neutral” call on the planter with an unchanged target price of RM4.57. ― Bernama
