KUALA LUMPUR (May 21): Sime Darby Property Bhd (KL:SIMEPROP) reported that its first quarter net profit doubled year-on-year, as the property developer saw its quarterly revenue hit a record high on higher sales and successful project executions.
The group's net profit for the three months ended March 31, 2024 (1QFY2024) jumped 103.7% to RM123.58 million from RM60.67 million in 1QFY2023, while revenue rose 42.81% to RM978.69 million from RM685.33 million, its bourse filing showed. Earnings per share doubled to 1.8 sen from 0.9 sen.
Property sales rose 38.8% to RM955.9 million in the quarter — which is already 32% of the group’s full-year sales target of RM3 billion — with significant contribution from its industrial products.
Industrial products accounted for 30.2% of the quarter’s total sales, while residential-landed made up 26.7% and residential high-rise accounted for 24.5%, according to Sime Darby Property in a statement accompanying the results.
The results eclipsed the property developer’s internal financial and operational expectations, said Sime Darby Property managing director Datuk Azmir Merican.
“We are actively diversifying our products and income streams. This quarter, our industrial segment emerged as the top contributor to our overall sales performance,” Azmir said, adding the group's strong 1QFY2024 performance indicates it is on the right track with its strategies, product developments and offerings.
Given the robust industrial segment and general improvement in the residential market, Sime Darby Property anticipates a favourable outlook for FY2024.
“The group is poised for further growth with the launch of two landmark projects, the highly anticipated signature residences — The Ophera at KLGCC Resort, and the Elmina Lakeside Mall,” the group said.
The group's bookings amounted to RM2.4 billion as of end-April, while unbilled sales totalled RM3.6 billion, which it said ensures earnings visibility for the next three years.
Shares in Sime Darby Property ended three sen or 2.88% higher at RM1.07 on Tuesday, giving the group a market capitalisation of RM7.28 billion.