KUALA LUMPUR, Aug 24 — Public Investment Bank Bhd has maintained its ‘neutral’ call on Sime Darby Plantation Bhd (SDP) with an unchanged target price of RM4.80 after SDP recorded an improved financial performance for the first half of 2022 (1H 2022) ended June 30, 2022.

In a research note today, the investment bank said SDP’s 1H 2022 was in line with its expectations but below consensus estimates.

"SDP’s management cited its concerns that the prolonged delay in the intake of new foreign workers would continue to affect the group’s harvesting activities in Malaysia, and it now expects the labour shortage issue to persist until 1H2023,” it said.

It noted that about 1.2 million metric tonnes of fresh fruit bunches were not harvested last year.

SDP scored a higher net profit of RM1.53 billion in 1H2022 from RM1.18 billion in 1H2021 due to higher recurring profit before interest and tax earned from both upstream and downstream segments and non-recurring activities.

The group also recorded a higher revenue of RM9.97 billion against RM8.08 billion in 1H2021.

At 10.41am, SDP’s shares were up by four sen to RM4.44 with 169,900 units changing hands. — Bernama