Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
Sime Darby Bhd concluded its financial year ended June 30, 2024 (FY2024) on a robust note, with net profit more than doubling to RM3.31 billion from RM1.46 billion in the previous year. This impressive increase was primarily driven by a significant RM2 billion gain from the disposal of its stake in Ramsay Sime Darby Health Care (RSDH) in December 2023.
Key Takeaways:
Significant Profit Increase and Dividend Declaration: Sime Darby's net profit surge to RM3.31 billion for FY2024 reflects a strong financial performance, bolstered by the one-off gain from the RSDH sale. Earnings per share rose to 48.5 sen, compared to 21.4 sen in FY2023. Excluding the one-off gain, the group's core net profit still showed a healthy 14% increase to RM1.3 billion, driven by strong performances in its industrial business in Australia and its motors businesses in Malaysia, Singapore, and Taiwan. The company declared a second interim dividend of 10 sen per share, bringing the total FY2024 payout to 13 sen per share or RM886 million.
Revenue Growth and Quarterly Performance: Sime Darby reported a 39% increase in revenue for FY2024, reaching RM67.13 billion, up from RM48.29 billion in the previous year. However, for the fourth quarter of FY2024 (4QFY2024), net profit fell sharply by 85.7% to RM89 million, primarily due to one-off impairments, losses in its motors operations in China, and higher finance costs. Despite this, quarterly revenue improved by 41.4% to RM18.8 billion, reflecting the group's continued strong operational performance.
Outlook and Market Conditions: Looking ahead, Sime Darby highlighted challenges such as excess production and oversupply in the automotive market, particularly in China, which is expected to exert downward pressure on margins. Despite these challenges, the company anticipates that its core financial performance in FY2025 will remain consistent with FY2024, supported by robust demand for equipment and maintenance in the Australian mining industry. The company also emphasized its strategic shift to focus on its core motors and industrial businesses following its exit from the healthcare segment.
At the noon market break on Tuesday, Sime Darby’s shares were down slightly by 1.13% to RM2.63, with a market value of RM17.93 billion. Despite the dip, the stock has risen 10.5% year-to-date.
In summary, Sime Darby’s strong FY2024 performance, driven by strategic disposals and robust operational results, positions the company well to navigate the challenges ahead, particularly in the automotive sector.
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