KUALA LUMPUR (Nov 24): Sime Darby Property Bhd (SDP), whose net profit for the third quarter ended Sept 30, 2023 (3QFY2023) jumped more than two-fold to RM144.91 million from RM56.13 million a year earlier on the back of higher revenue, says it is on track to surpass its FY2023 sales target of RM2.7 billion.

In a bourse filing on Friday, SDP stated that revenue grew 52.4% to RM1 billion year-on-year, driven by improvements in the property development segment, higher sales from residential and industrial products, and increased on-site progress development. 

Earnings per share also increased to 2.10 sen from 0.80 sen previously.

For the cumulative nine months ending Sept 30, 2023 (9MFY2023), SDP's net profit rose to RM276.65 million from RM212.68 million, supported by higher revenue of RM2.42 billion compared to RM1.78 billion previously. This improvement was attributed to enhanced site progress and successful sales achievements.

In a separate statement, SDP announced that it logged RM2.5 billion in sales during the period under review.

SDP group managing director Datuk Azmir Merican said the group's sales momentum reflects its diverse product offerings with the right pricing at strategic 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 said

On its outlook, SDP expressed optimism, stating that with the Malaysian Gross Domestic Product expected to grow by approximately 4.0% in 2023, the group anticipates an improved property market outlook in line with the economy, supported by domestic demand.

As of Sept 30, 2023, SDP reported cash reserves of RM661.9 million and a net gearing ratio of 27.4%, reinforcing its readiness for future endeavors.

"We have an exciting launch pipeline for Q4 2023 worth approximately RM791.2 million in GDV across our townships. With the strong momentum built up to date, we are confident in our ability to meet our financial and operational targets for the year," Azmir added.

Trading in SDB's shares resumed at 10am on Friday.