KUALA LUMPUR: Sime Darby Property Bhd has revised up its sales target of RM2.3 billion to RM2.7 billion, and its gross development value (GDV) launch target of RM3.0 billion to RM4.0 billion, for the financial year ending Dec 31, 2023, (FY2023) given its strong sales momentum in the first half of the year.
In the first half of the year, the property developer said it recorded sales of RM1.5 billion, which represents 65 per cent of its original sales target.
The industrial segment was the key contributor with 40 per cent of RM597 million of the total sales achieved during the period.
Its net profit for the second quarter ended June 30, 2023 (2QFY2023) fell 32 per cent year-on-year to RM71.07 million from RM104.99 million a year earlier, on the back of higher share of loss from joint ventures while revenue rose to RM688.92 million from RM615.61 million a year ago.
Earnings per share slipped to one sen, from 1.50 sen previously.
It also declared an interim dividend of one sen per share amounting to a payout of RM68 million.
Sime Darby Property managing director Datuk Azmir Merican said the group is well-positioned to capitalise on the resilient market demand, which also presents 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," said Azmir.
The group registered cash reserves of RM795.4 million and a net gearing ratio of 20.7 per cent.
Meanwhile, the group said it recorded unbilled sales of RM3.8 billion as at June 30, 2023, versus RM3.6 billion as at Dec 31, 2022, ensuring revenue visibility for the next three years.
Its current bookings stood at RM1.9 billion as at Aug 6 2023.
At the time of writing, Sime Darby Property shares rose 5.43 per cent or 4.5 sen to 68 sen, with 20.96 million shares done, giving it a market value of RM4.62 billion.