For the second quarter, ended June 30 (Q2 2022), it came in with a net profit of RM105 million, up from RM23.21 million in the same period last year.
Thanks to commendable take-up rates, the property company’s revenue for the quarter under review also rose 22.6% to RM615.61 million from RM501.97 million previously.
Another contributing factor is the strong development site progress at its major townships from June onwards as well as sales of products with higher margins.
In a filing with Bursa Malaysia today, the property developer said it is committed to achieving its product launch target of RM2.8 billion in gross development value (GDV) for 2022.
It said RM1.5 billion worth of products had been launched in the first half of the year (H1 2022), garnering a 94% average take-up rate for residential properties excluding statutory products as of Aug 7.
The group’s net profit for H1 2022 rose to RM156.56 million from RM89.31 million previously, while revenue increased to RM1.096 billion from RM1.091 billion a year ago.
On its H1 2022 performance, the group said the property development segment contributed 91.5% of total revenue.
“The investment and asset management segments also registered good performances, buoyed by higher revenue from KL East Mall and Melawati Mall that reflected an improved occupancy rate and footfall,” it said.
The resumption of business activities in Q4 2021 contributed to the leisure segment’s RM41.2 million revenue.
“Sime Darby Property is on track to exceed its 2022 sales target based on the group’s RM1.9 billion sales achievement in H1 2022 which captures approximately 73% of the RM2.6 billion full-year target,” it said.
The group said its unbilled sales amounted to RM3.4 billion as at June 2022 compared to RM1.8 billion in the corresponding period last year, ensuring earnings visibility for the next two years.
Sime Darby Property has declared its first interim dividend of a sen per share for the financial year ending Dec 31, 2022, amounting to RM68 million due to the strong H1 2022 results.
On the outlook, Sime Darby Property group managing director Azmir Merican said it would continue to introduce more products which resonate with the market, given the encouraging demand from its recent launches.
“The group’s continued financial strength is substantiated by its cash and cash equivalents at RM820 million and net gearing of 30.3% as at H1 2022, ensuring it is well positioned to fund future growth initiatives,” he added.