Sime Darby Bhd edged higher in early trade, supported by mild buying interest following recent corporate developments, as analysts said sentiment remained cautiously positive despite policy headwinds affecting its automotive exposure.
As at 11.37 am, the stock was last done at RM2.19, up RM0.01 or 0.46% with intraday movement between RM2.17 and RM2.21.
Market sentiment around the counter was influenced by recent leadership changes and sector policy developments.
Sime Darby appointed former Permodalan Nasional Bhd president and group chief executive officer Datuk Abdul Rahman Ahmad as its new non-independent non-executive chairman effective May 7, 2026, a move seen as strengthening governance and board experience given his extensive background in banking, investment and corporate leadership.
However, analysts noted lingering caution following Malaysia’s new electric vehicle policy introduced by the Investment, Trade and Industry Ministry, which imposes stricter cost, insurance and freight thresholds and higher power requirements for completely built-up electric vehicles from 1 July. Research houses said the move could reshape the entry-level EV market and potentially impact volumes in the mass-market segment.
RHB Investment Bank Bhd maintained its BUY call on Sime Darby with an unchanged target price of RM2.55, implying about 15.6% upside, although it flagged potential earnings pressure from softer EV volumes and margin compression within its automotive division.
Analysts estimated that exposure to Chinese EV brands, particularly BYD which accounts for a significant portion of sales, could face near-term disruption as inventory adjusts to the new regulatory framework.
Despite these headwinds, analysts said valuation remains attractive at around one standard deviation below its historical average, keeping investor focus on longer-term earnings stability and diversification across its industrial and plantation segments.
