Sime Darby Property sets higher 2021 sales target of RM2.4bil

KUALA LUMPUR: Sime Darby Property Bhd has set a higher sales target of RM2.4bil for 2021, off the back of a target-beating sales performance in 2020.

In 2021, the group will launch projects with a gross development value of about RM2.5bil, which will include a product mix of both landed and high-rise residentials, as well as industrial and commercial offerings, it said in a statement.

The group achieved total sales of RM2bil in 2020, 43% higher than the revised sales target of RM1.4bil.

About 36% of the total sales were generated in the fourth quarter itself, facilitated by the historically low overnight policy rate environment, as well as the re-introduction of the Home Ownership Campaign in June 2020.

"Our focus now is to restore the Group’s profitability and achieve our ambitious sales target for 2021.

"We have identified areas where we can further harness business opportunities amidst the ongoing pandemic, are stepping up our customer experience efforts to meet customers’ needs for homes with the right price and sales experiences that are safe and convenient,” said Sime Darby Property group managing director Datuk Azmir Merican.

He added that new launches in FY2020 saw a record average take-up rate of 88%, which underlined the group's strategy of having the right product mix at the right price points in well-located townships.

For the financial year ended Dec 31, 2020, Sime Darby Property Bhd posted a net loss of RM478.8mil versus a net profit of RM598.53mil in the previous year amid the negative impact of the Covid-19 pandemic.

Revenue for the year was RM2.1bil as compared to RM3.18bil in 2019.

The property developer said the full-year results reflected asset impairment costs including the already announced impairment loss from the Battersea Power Station project as well as write-down/write-off of inventories and provisions totalling RM620.3mil.

Excluding these impairments, the group posted a profit before interest and tax of RM110.4mil in FY20.

In Q4, the group's loss before interest and tax (LBIT)was down 84.4% to RM53.3mil as compared to a LBIT of RM342.3mil in the immediate preceding quarter due to lower impairments.

Revenue in Q4 was RM705.2mil, up 19% from the preceding quarter with 95% of revenue contributed by the group's property development division.
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