Wednesday, May 11, 2011

SIME ... May11

Sime Darby Motors is planning for rapid growth of its dealership network in China this year. The company would expand the number of its vehicle outlets from 14 to 20 in the short term within both first- and second-tier cities in China. This will be funded by a combination of internally generated funds and external borrowings.

Sime Darby Motors ventured into the China market in the 1990s, where it retails BMW, MINI, Rolls-Royce, Lamborghini, Jaguar and Land Rover marques. Its BMW dealership operations are located in major cities such as Shenzhen, Guangzhou, Shantou, Hainan, Kumning, Changsha and Chengdu while Rolls-Royce and Lamborghini dealerships operate in Shanghai and Hangzhou. Its Jaguar and Land Rover operations are based in Shanghai.

Sime Darby Motors is the automotive division of Sime Darby Bhd, the world's largest listed producer of palm oil. It is now the largest contributor to the group's revenue.

For the six months ended Dec 31, 2010, the group recorded a RM19.1bil revenue, with Sime Darby Motors contributing 35% (RM6.67bil) and the plantation division coming in as the second largest revenue contributor with 30% (RM5.72bil). However, in terms of the group's pre-tax profit, the automotive division was the third largest contributor with 12.6% (RM277mil), compared with the plantation division's contribution of 59% (RM1.3bil) and industrial division's contribution of 21% (RM456mil).

About half of the PBIT in FY09 was contributed by Sime Darby Motors' operations in China, Hong Kong and Macau, followed by Singapore and Thailand (26%), Malaysia (21%) and Australia and New Zealand (3%).

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