Sime Darby Property posts net profit surge to RM144.92mil in 3Q

KUALA LUMPUR: Sime Darby Property Bhd achieved RM2.5bil in sales in the first nine months of 2023, putting it on track to surpass its FY23 sales target of RM2.7bil.

Group managing director Datuk Azmir Merican said the group's sales momentum is indicative of its diverse product offerings with the right pricing at the right locations.

"The consistent success of our residential landed, residential high-rise and industrial products highlights the market's positive response to our strategic direction and product developments," he added.

For the third quarter ended Sept 30, 2023 (3QFY23), the group's net profit surged to RM144.92mil from RM56.13mil in the same quarter in the previous year, leading to a jump in basic earnings per share to 2.1 sen from 0.8 sen previously.

Revenue during the quarter under review was RM1.05bil, compared to RM689.3mil in the same 2022 quarter.

The strong quarter performance was driven by the property development segment, which saw a significant improvement on higher sales from residential and industrial products and increased on-site progress development, said the group.

During the nine months period to Sept 30, 2023, Sime Darby Property launched products worth RM3.2bil in GDV across the residential landed, residential high-rise and industrial segments.

"Residential landed products, Emilia 1 and 2 in Nilai Impian achieved 100% take-ups while Serenia Anisa 1 in Serenia City and Elmina Green 7 in the City of Elmina further underscored the achievement with over 90% take-up rates.

"In the residential high-rise segment, Teja in Subang Jaya City Centre (SJCC) recorded 99% take-up while industrial products at Elmina Business Park and Bandar Universiti Pagoh achieved full take-ups," it said.

The group's net profit in 9MFY23 was RM276.66mil as compared to RM212.69mil in 9MFY22, while revenue rose to RM2.42bil from RM1.79bil in the comparative period.

Moving forward, Sime Darby Property said it is on course to meeting its targets for the year with a pipeline of launches worth about RM791.2mil in gross development value (GDV) in the final quarter of 2023.

It said it anticipates the property market outlook to improve in line with the economy, supported by domestic demand.

"The group’s robust financial position, cash reserve of RM661.9mil and net gearing ratio of 27.4% as of Sept 30, 2023 further solidifies its readiness for future endeavours," it said.

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