Sime Darby Property posts 1H net profit of RM80.51mil, declares 1 sen div per share

KUALA LUMPUR: Sime Darby Property Bhd posted a net profit of RM80.51mil in the first half of the financial year ended June 30, 2021, compared to a net loss of RM90.28mil in the same period last year due to improved contribution from the property development segment.

Revenue in the period under review was up 42.8% to RM1.09bil from RM764mil in the previous corresponding period.

The board of directors declared a first interim dividend of one sen per share with ex-date on Oct 28 and payable on Nov 16.

According to the group, the property development segment contributed a profit of RM190.6mil as compared to a loss of RM85mil in the comparative period last year due to the higher sales and development activities in City of Elmina, Elmina Business Park, Serenia City, Bukit Jelutong, Bandar Ainsdale, Nilai Impian, The Glades and Senada projects coupled with higher sales of completed stocks in KL East and Serini.

"Sales of residential products have improved significantly as compared to the previous year due to intensive online marketing efforts and supported with the Home Ownership Campaign," it said in a statement accompanying the earnings result.

The property development segment's performance was further enhanced with profit from the intercompany sale of land in Bandar Bukit Raja of RM31.2mil to the investment and asset management segment for the development of industrial and logistics projects.

There was also a lower share of losses from joint ventures and associates of RM6.2mil as compared to RM19mil in the first half of 2020 due to higher contribution from PJ Midtown and lower marketing expenses incurred by Battersea.

In the investment and asset management segment, the result improved marginally to a loss of RM3.2mil from a loss of RM4.5mil in the first half of last year.

Similarly in the leisure segment, there were lower losses of RM6.2mil as compared to a loss of RM15.8mil in the same period last year.

Moving forward, the group remains on track to meet its RM2.4bil sales target for the year, supported by year-to-date sales of RM1.3bil and planned launches worth RM2.1bil in GDV for the second half of the year.

"The Group will accelerate its income diversification into the industrial & logistics development segment, launch products at strategic locations with the right price points, unlock value through active land bank management and monetization, as well as exercise vigilant cost management for the rest of FY2021.

"These efforts will enhance resilience through strengthened operations and financial position, providing us a solid footing to seize opportunities when the market recovers," it said.

As at end June, the group had unbilled sales of RM1.8bil and a net gearing ratio of 0.3 times.
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