‘SIME DARBY TO BENEFIT FROM MARITIME DEAL’

It has strategic landbank on island, says RHB Research

SIME Darby Bhd will be a big beneficiary if the plan to build a port and maritime city on Carey Island in Selangor materialises, given its vast landbank there, said analysts. The potential project would also spur further development along southern Selangor’s industrial belt, they added.

Sime Darby, through Sime Darby Property Bhd, on Monday signed a memorandum of understanding (MoU) with MMC Port Holdings Sdn Bhd and India’s Adani Ports and Special Economic Zone Ltd to study the feasibility of developing a maritime city on its land in Carey Island.

RHB Research Institute Sdn Bhd is positive on the initial pact.

“Sime Darby Property is well-positioned to benefit from this development, given its strategic landbank in the area.

“The development would also be a strategic fit to the Malaysia Vision Valley Development project, to be spearheaded by Sime Darby Property,” said RHB Research in a report yesterday.

It noted that Sime Darby Property had 10,522ha of landbank on Carey Island.

“As for the Malaysian Vision Valley project, Sime Darby Property has about 55,037.24ha of landbank in Negri Sembilan, which would likely also benefit from this project,” it added.

Hong Leong Investment Bank Bhd (HLIB) is keeping a “buy” call on Sime Darby following the MoU.

It said the group was expected to benefit greatly should the deal materialise.

HLIB has a target price of RM10.06 on Sime Darby in light of additional factors like its plan to spin-off the plantation and property businesses, the recent completion of private placement, and better quarters for its plantation and property units.