0211 GMT - The outlook for Sime Darby's industrial division could remain a bright spot in 2H FY 2025, despite near-term pressure from price cuts for equipment parts and China's prolonged downturn, RHB IB analyst Syahril Hanafiah says in a note. The industrial segment's order book expanded 23% on quarter as of end-2024, driven by strong commodity demand, he notes. The automotive segment may face cyclical volume normalization, but associate UMW's contributions, especially from Perodua and Toyota, should help offset the decline, he reckons. The analyst cuts FY 2025-FY 2027 earnings forecasts on Sime Darby by 6%, 4% and 4%, respectively. RHB cuts Sime Darby's target price to MYR3.05 from MYR3.15 but keeps a buy rating. Shares are 2.2% lower at MYR2.23. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
February 24, 2025 21:11 ET (02:11 GMT)
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