CIMB Securities maintained its BUY call on Sime Darby Property Bhd with a target price of RM1.72, saying strong demand at its industrial developments and growing recurring income exposure are strengthening the group’s longer-term prospects.
Following a visit to the Bandar Bukit Raja growth corridor, CIMB said the first two Metrohubs at E-Metro Logistics Park, with a combined net lettable area of 1.8 million square feet, are fully occupied. Metrohub 4, which opened in July, has secured Mixue as its first tenant while Metrohub 3 has attracted strong enquiries from electric vehicle component manufacturers.
The research house also highlighted the upcoming BBR North project, a 1,022-acre industrial and logistics hub in Kuala Selangor that will broaden Sime Darby Property’s exposure to the heavy industrial segment when launched in FY27.
Beyond property development, CIMB said Sime Darby Property is expanding its fee-based income through third-party capital, with funds under management rising 2.3 times to RM2.3 billion as at July 2026 from RM1 billion in December 2025.
CIMB estimates the group could generate an additional RM13 million to RM25 million in recurring earnings before interest and tax once its New Economy Venture fund is fully deployed, assuming annual fee income of 1% to 2%.
The research house said Sime Darby Property remains on track to increase recurring income to about 30% of group EBIT from FY28 onwards, supported by its growing assets under management and the scheduled commissioning of its second hyperscale data centre by end-2027.
As of 10.39 am, the stock price slipped 0.75% to RM1.33.
