26/04/2013 (Bernama) - HwangDBS Vickers Research expects another year of negative earnings growth for Sime Darby Bhd in financial year (FY) 2014 based on its forecast of flat crude palm oil (CPO) prices.

In a note Thursday, HwangDBS Vickers said in the nine months FY13, spot CPO prices averaged RM2,455 per metric tonne, slightly lower than its FY13 average selling price forecast of RM2,538.

"Despite this, we understand fresh fruit bunches output has recovered by six per cent from FY12.

"Hence, this, combined with lower fertiliser prices, should mitigate the impact of weak CPO prices," it said.

HwangDBS Vickers said with decent cash flow, potential RM340 million gain from sale of its hospitals to Sime Darby Ramsay Healthcare and three per cent dividend yield, it has reiterated its 'hold' call on the counter at the target price of RM9.60.

At midday, Sime Darby's share price increased two sen to RM9.40 with 1.85 million shares traded.