• We are ceasing coverage on UMW as Sime Darby (SIME MK, BUY, TP: MYR2.85) does not intend to maintain listing of UMW post-acquisition. With more than 90% shareholding in UMW, we are confident that SIME will be able to acquire 100% of shares by end-Jan, resulting in the delisting of the counter. Our last call was NEUTRAL with a TP of MYR5.

• 9M23 results recap. UMW’s 3Q23 core net profit of MYR163m brought 9M23 core net profit to MYR401m, making up 89% of ours and Street’s full- year estimate. The deviation was mainly due to stronger-than-expected manufacturing and engineering (M&E) and automotive segments.

• Ceasing coverage. Our most recent recommendation was NEUTRAL with a TP of MYR5, which matches SIME’s offer price.

Source: RHB Research - 26 Jan 2024