Sime Darby Property raises FY23 sales target to RM2.7bil on growing optimism

KUALA LUMPUR: Sime Darby Property Bhd has revised higher its sales target to RM2.7bil from RM2.3bil previously as it grows confident the strong momentum in 1H23 will continue over the course of the year.

In the first half of the year, the property developers said it recorded sales of RM1.5bil, which represents 65% of its original sales target.

The industrial segment was the key contributor with 40% of RM597mil of the total sales achieved during the period.

Sime Darby Property managing director Datuk Azmir Merican said the group is well-positioned to capitalise on the resilient market demand, which also presents it with an opportunity to maximise its 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," he said in a statement.

In the second quarter ended June 30, 2023, Sime Darby Property registered a net profit of RM71.07mil, which was lower than RM105mil in the previous corresponding quarter, mainly on the back of a higher share of loss from joint ventures and weaker contribution from other gains.

The group's earnings per share fell to one sen from 1.5 sen previously.

Revenue during the quarter under review, however, was higher at RM688.92mil as compared to RM615.61mil in the same quarter in 2022.

This brought the group's first half net profit to RM131.74mil as compared to RM156.56mil in 1HFY22 and revenue to RM1.37bil versus RM1.1bil in the same period in 2022.

The board of directors declared a first interim dividend of one sen per share, amounting to RM68mil, payable on Oct 19, 2023.

According to the group, completed inventories reduced significantly to RM237.7mil from RM277.2mil as at 31 December 2022, the lowest level ever achieved since its demerger.

The group registered cash reserves of RM795.4mil and a net gearing ratio of 20.7%.

Meanwhile, the group said it recorded unbilled sales of RM3.8bil as at June 30, 2023, versus RM3.6bil as at Dec 31, 2022, ensuring revenue visibility for the next three years.

Current bookings stood at RM1.9 bil as at Aug 6 2023.

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