PETALING JAYA: Sime Darby Property Bhd registered revenue of RM1.4 billion for the six months ended June 30, 2023 (H1’23), a 25% increase from the RM1.1 billion posted in the same period a year ago.
The group’s gross profit margin of 28% exceeded expectations, with profit before tax (PBT) at RM212.2 million, and profit after tax and minority interest (Patami) at RM131.7 million, reflective of the more competitive and dynamic market environment.
Fuelled by the progress of its on-going projects, the group registered a higher revenue at RM688.9 million compared with the preceding quarter. PBT improved 17% quarter-on-quarter (q-o-q) to RM114.3 million while Patami increased 17% to RM71.1 million.
Capitalising on market opportunities, the group’s sales totalled RM1.5 billion, which represents 65% of its RM2.3 billion target for financial year 2023. The industrial segment was the key contributor with 40% or RM597 million of total sales achieved in the first half of FY23.
Sime Darby Property group managing director Datuk Azmir Merican said: “In the face of current market dynamics, our strategy is rooted in understanding market nuances and consumer demand. This has allowed us to pivot effectively and capitalise on areas of growth while maintaining consistency in our offerings. This balance has been crucial for our continued sales and operational growth trajectory in H1 FY2023.”
Further to its operational excellence, the group won 33 awards in H1’23, with two at the 2023 FIABCI World Prix d’Excellence Awards held in the United States – for its City of Elmina and Cantara Residences
On Aug 21, Sime Darby Property completed its second issuance under its Sukuk Musharakah Programme with a nominal value of RM600 million. The issuance attracted attention from a diverse group of fixed-income and high-calibre investors, reaching an oversubscription of more than eight times and accumulating an order book valued at over RM4.8 billion.
The property development segment registered 27% y-o-y revenue growth, reaching RM1.3 billion compared with RM1 billion last year.
During the first half of FY23, the group unveiled new projects valued at RM2.1 billion, which represents 70% of its full-year launch target of RM3 billion. The offerings were diversified to meet market needs: 49% residential landed, 30% residential high-rise, 18% industrial and 3% commercial.
The group posted higher unbilled sales of RM3.8 billion as at June 30, versus RM3.6 billion as at Dec 31, 2022, ensuring revenue visibility for the next three years. Bookings stood at RM1.9 billion on Aug 6.
Sime Darby Property declared a first interim dividend of 1 sen per share for the financial year ending Dec 31, 2023 amounting to a payout of RM68 million.
Confident that the strong momentum seen in the first half of 2023 will continue into the second half of the year, the group has revised its sales target of RM2.3 billion to RM2.7 billion and the GDV launch target of RM3 billion to RM4 billion.
“Given the positive outlook, we believe that we are well positioned to capitalise on the resilient market demand, which also presents us with an opportunity to maximise our property development growth over the coming years. We are optimistic in our ability to achieve our goals for the year and subsequently strive towards maximising shareholders’ value,” Azmir said.