KUALA LUMPUR: Moving forward into the second half of its financial year (2HFY24), Sime Darby Bhd
is expected to continue to leverage its industrial segment as well as the consolidation of UMW Holdings Bhd.
Hong Leong Investment Bank (HLIB) Research said in a post-results update that earnings can be expected to be sustained in FY24, underpinned by the high orderbook of RM4.2bil.
"66% of its order book is attributed to the Australia market (mainly mining sector) due to the still highly profitable coal prices, while margins are expected to sustain on strong demand for maintenance and overhaul services.
"Demand for construction equipment may see some recovery trend as Malaysia and Singapore starts implementing mega infrastructure projects," said the research firm.
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