Sime Darby Berhad : Short-Term Weakness In FFB Production,But Long-Term Sustainability Intact

Six key takeaways from our recent visit:
(1) Slower FFB production in Indonesia now;
(2) Longer-term FFB growth sustainable;
(3) CPO price view unchanged;
(4) Production costs to decline, but not as significantly as seen in 1HFY10;
(5) Property division picking up speed; and
(6) Capex higher than expected.

Sime Darby Berhad : Short-Term Weakness In FFB Production,But Long-Term Sustainability Intact