$SIME (4197.MY)$ see chatgpt analyse of this stock 1st Q 202...

#### **Company Overview and Profile**

Sime Darby Berhad is a diversified multinational involved in key growth sectors, namely, plantation, industrial equipment, motors, property, logistics, and healthcare. It operates mainly in the Asia-Pacific region.

#### **Shareholders' Equity and Statistics**

- **Shareholders' Equity**: Reflects the company's total assets minus its total liabilities. It's an indicator of financial health.

- **Institutional Shareholders**: Institutional investors like EPF and KWAP hold significant shares. Recent disposals by these institutions have impacted the stock price negatively.

#### **Financial Analysis**

##### **Efficiency Ratios**

- **Receivable Turnover**: Decreased by 1.72% to 2.3269 in Q1 2024. This indicates that the company is collecting its receivables slower than before.

- **Fixed Assets Turnover**: Decreased by 10.04% to 1.2387, suggesting a decline in efficiency in using fixed assets to generate sales.

- **Total Asset Turnover**: Decreased by 5.76% to 0.3504, indicating lower overall efficiency.

##### **Profitability Ratios**

- **ROE (Return on Equity)**: Increased by 10.96% to 1.68%, showing better profitability for shareholders.

- **ROA (Return on Assets)**: Decreased by 18.28% to 0.63%, indicating a decline in how effectively the company uses its assets to generate earnings.

- **Net Margin**: Decreased by 13.30% to 1.81%, showing reduced profitability.

##### **Financial Health Ratios**

- **Long-Term Debt to Equity Ratio**: Increased significantly by 188.88% to 34.25%. This rise indicates a higher debt burden relative to equity, increasing financial risk.

- **Current Ratio**: Slightly decreased by 7.66% to 1.3739, reflecting a moderate reduction in liquidity.

- **Quick Ratio**: Improved by 3.24% to 0.5858, indicating better short-term liquidity excluding inventories.

##### **Growth Ratios**

- **Revenue CAGR (3Y and 5Y)**: Data not available for the specific quarters, but annual figures suggest significant past growth.

- **Net Income CAGR**: Shows substantial growth over 3 years (308.46%) but negative over 5 years (-5.35%).

- **Dividend CAGR**: Indicates variability, with a 3-year CAGR of -79.71% and a 10-year CAGR of -12.87%, reflecting inconsistent dividend growth.

#### **Dividends and Equity Events**

- **Dividend Payout**: The company's ability to pay dividends has shown inconsistency, impacting investor confidence.

- **Stock Split**: No recent stock splits have been reported.

#### **Recent Performance and Market Sentiment**

- **Q1 Performance**: The drop in efficiency and profitability ratios compared to previous quarters highlights operational challenges.

- **Market Sentiment**: The selling pressure from institutional investors and concerns over increased debt have negatively impacted investor sentiment and stock price.

### Summary

Sime Darby Berhad has faced several challenges in Q1 2024, including decreased efficiency and profitability, and increased financial leverage. The significant institutional shareholding changes and concerns over the company's debt levels have contributed to the stock's decline. Investors should monitor these factors closely, along with the company's strategic responses to evolving market conditions, particularly in the automotive sector.