Most of Sime‟s key divisions appear to be relatively unaffected by the global slowdown, which is good news. The results briefing revealed that there could be upside to Sime‟s KPI targets if CPO price stays at the current level. There is also M&A potential. However, we prune our FY12-14 EPS forecasts for lower CPO prices. We also reduce our target price (10% discount to SOP) as we roll it forward to end-12. But this does not change our TRADING BUY call which reflects its attractive valuations against peers and M&A potential.
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