Sime Darby banks on mining, data centres to lift FY27 earnings
KUALA LUMPUR: Sime Darby Bhd expects a rebound in its mining business and involvement in data centres to contribute to its earnings in the financial year 2027 (FY27).
Sime Darby Bhd remains optimistic about its FY27 earnings, citing potential growth in its mining and data centre sectors to offset challenges in its auto segment. While the automotive division faces a slowdown, particularly in China, Sime Darby's CEO Datuk Jeffri Salim Davidson expressed cautious optimism regarding BMW's upcoming Neue Klasse range, which could bolster growth.
The group anticipates improved performance in markets like Singapore and Malaysia, with China remaining a competitive challenge. In terms of industrial operations, Sime Darby's mining business is showing promising signs as repair and rebuild work gain traction. Additionally, the company's involvement in data centres, supplying Caterpillar engines, is viewed as a significant growth driver.
Group CFO Muhammad Noor Abd Aziz attributed the decline in FY26 earnings primarily to lower gains from the disposal of Malaysia Vision Valley land, but remains confident about maintaining stable earnings in the upcoming quarters. Despite a 32.6% increase in core net profit to RM1.55 billion in FY26, driven by stronger contributions from the motors division, the overall revenue remained broadly stable at RM69.5 billion.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
