KUALA LUMPUR (Feb 28): Sime Darby Property Bhd's (SDP) net profit for the fourth quarter ended Dec 31, 2022 (4QFY2022) surged 64.34% to RM103.15 million from RM62.77 million a year earlier, on the back of higher revenue.

Quarterly revenue grew 29.58% to RM956.9 million from RM738.44 million in 4QFY2021, driven by higher sales and site-progress from the group's property development segment.

Earnings per share rose to 1.5 sen from 0.9 sen, according to the group’s bourse filing.

SDP declared a second dividend of one sen per share, which brought the total dividend for FY2022 to two sen, compared with one sen in FY2021.

For the full year, SDP’s net profit more than doubled to RM315.84 million from RM146.89 million in FY2021, underpinned by profitability growth across all business segments, including contributions from the group’s land monetisation activities and disposal of non-core assets.

Full-year revenue improved 23.7% to RM2.74 billion from RM2.22 billion.

The better overall financial performance in FY2022 was despite a fair value loss and lease adjustments on investment properties totalling RM64.4 million.

SDP group managing director Datuk Azmir Merican, in a statement, said the group successfully delivered 1,855 units of products to its customers in FY2022 while being affected with labour-related challenges and escalating material prices.

The group said the year concluded with its highest ever post-2017 demerger operating profit of RM487.8 million and sales achievement of RM3.7 billion, surpassing its RM2.6 billion sales target. Bookings stood at RM1.8 billion as at Feb 5, and unbilled sales stood at RM3.6 billion as at Dec 31, 2022.

Moving forward, the group said it is proactively undertaking landbank management and monetisation activities with the proposed acquisition of up to 948 acres of land in Klang and disposal of its non-core lands.

SDP added that it will focus its efforts in fulfilling delivery of products given the anticipated slower economic growth in 2023. The group plans to launch market-driven products within the industrial and residential segment which has shown resilience in the property market.

SDP's share price dropped half a sen to 48 sen, valuing the group at RM3.23 billion. Year to date, the counter has climbed 6.67%.