All eyes to be on Sime
According to a consensus of 28 research houses, Malaysia's largest conglomerate is expected to announce a net profit of RM1.7 billion on RM32.6 billion revenue
Analysts still expect troubled Sime Darby Bhd (4197) to turn a profit for the year to June 30 2010 although admitting they are in the dark about its fourth-quarter performance.
The group is now carrying out forensic investigations into staggering cost overruns and delays at its energy and utilities division, while the Malaysian Anti-Corruption Commission has also joined the fray.
The group has made a net profit of RM804 million for the nine months to March 31 and revenue of RM23.7 billion.
It is set to announce its fourth-quarter results tomorrow. The event may also be the first public appearance of its new acting chief executive officer Datuk Mohd Bakke Salleh.
Shares of Sime Darby have suffered this year. They have lost 13 per cent so far this year, while the broader market has gained 7 per cent.
The stock was up half a per cent, or 4 sen, to close at RM7.87 yesterday.
Sime Darby posted a net profit of RM2.3 billion on revenue of RM31 billion in 2009.
CIMB regional research analyst Ivy Ng said much is unknown among analysts at this moment as the group has yet to indicate if it is making any new losses in the fourth quarter.
"Sime Darby has not called for an analysts meeting to update analysts on the latest situation. I think nobody knows how Sime has performed in the fourth quarter.
"So we have not included any new losses for Sime Darby and still expect a full-year profit of around RM1.5 billion," Ng said.
Sime Darby made its first quarterly loss since its mega-merger in November 2007 when it sank into the red with a net loss of RM308.6 million in its third quarter ended March 31 2010
The energy and utilities arm alone made an operating loss of over RM1 billion in the nine months ended March 31 2010.
Macquarie Research Equities' Shunaina Dhanuka said the market already expects Sime Darby to post lower profit due to weaker crude palm oil prices.
"But it is hard to make any other assumptions until we know the outcome of the results as well as the ongoing probe," she said.
An analyst at RHB Institute forecasts the group to make a net profit of RM1.3 billion.
She thinks that things may return to normal next year if Sime Darby does not make any other provisions in the fourth quarter.
Analysts still expect troubled Sime Darby Bhd (4197) to turn a profit for the year to June 30 2010 although admitting they are in the dark about its fourth-quarter performance.
The group is now carrying out forensic investigations into staggering cost overruns and delays at its energy and utilities division, while the Malaysian Anti-Corruption Commission has also joined the fray.A consensus of 28 research houses compiled by Bloomberg Analytics expects Malaysia's largest conglomerate to announce a net profit of RM1.7 billion on RM32.6 billion revenue.
The group has made a net profit of RM804 million for the nine months to March 31 and revenue of RM23.7 billion.
It is set to announce its fourth-quarter results tomorrow. The event may also be the first public appearance of its new acting chief executive officer Datuk Mohd Bakke Salleh.
Shares of Sime Darby have suffered this year. They have lost 13 per cent so far this year, while the broader market has gained 7 per cent.
The stock was up half a per cent, or 4 sen, to close at RM7.87 yesterday.
Sime Darby posted a net profit of RM2.3 billion on revenue of RM31 billion in 2009.
CIMB regional research analyst Ivy Ng said much is unknown among analysts at this moment as the group has yet to indicate if it is making any new losses in the fourth quarter.
"Sime Darby has not called for an analysts meeting to update analysts on the latest situation. I think nobody knows how Sime has performed in the fourth quarter.
"So we have not included any new losses for Sime Darby and still expect a full-year profit of around RM1.5 billion," Ng said.
Sime Darby made its first quarterly loss since its mega-merger in November 2007 when it sank into the red with a net loss of RM308.6 million in its third quarter ended March 31 2010
The energy and utilities arm alone made an operating loss of over RM1 billion in the nine months ended March 31 2010.
Macquarie Research Equities' Shunaina Dhanuka said the market already expects Sime Darby to post lower profit due to weaker crude palm oil prices.
"But it is hard to make any other assumptions until we know the outcome of the results as well as the ongoing probe," she said.
An analyst at RHB Institute forecasts the group to make a net profit of RM1.3 billion.
She thinks that things may return to normal next year if Sime Darby does not make any other provisions in the fourth quarter.
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