KUALA LUMPUR (Aug 22): Sime Darby Property Bhd (KL:SIMEPROP) said on Thursday it is raising its sales target for this year on strong demand following a strong showing in the first six months.

Sales in January-June rose 40% to RM2.1 billion and the company now expects to sell RM3.5 billion worth of properties by the end of December, Sime Darby Property said in a statement following its latest quarterly results announcement. That compares to its earlier forecast of RM3.0 billion for 2024.

The company “is on track to meet its FY2024 targets, bolstered by a strong first half performance”, Sime Darby Property said. “Transitioning into the second half of the year, the group will continue to launch a diverse range of products across its townships to capitalise on growing market demand.”

The momentum in the first half is expected to be sustained into the second half, driven by healthy demand and rising sales volume, the company added.

Net profit more than doubled in the second quarter ended June 30, 2024 (2QFY2024) to RM161.96 million thanks to land sales and higher sales of industrial and high-rise homes, compared to RM71.07 million over the same period last year, the company said in an exchange filing.

Revenue for the quarter jumped year-on-year to RM1.2 billion from RM688.92 million.

Shares of Sime Darby Property rose as much as nine sen or 6.5% to RM1.47 following the results announcement, and ended Thursday at RM1.40. At its closing price, the company has a market capitalisation of RM9.52 billion.

So far this year, the stock has more than doubled in price, thanks to partly to the company’s diversification into industrial properties, which offer faster billings and higher margins. The company’s venture into data centre space has also boosted investors sentiment.

For the first half, net profit also more than doubled to RM285.54 million when compared to RM131.74 million in the same six months in 2023. Cumulative revenue surged 59% year-on-year to RM2.18 billion from RM1.37 billion.

Unbilled sales totalled RM3.7 billion, providing revenue for the next three years, completed inventory is worth RM369.6 million. Sime Darby Property has launched properties worth RM2.3 billion in gross development value, 59% of the full-year target of RM3.9 billion.

It also declared the first dividend of 1.5 sen per share for FY2024, payable on Nov 6, 2024.

"Our first half results have been exceptional, demonstrating our capacity to strategically align with market demands and enhance our operational efficiencies,” said Sime Darby Property managing director Datuk Seri Azmir Merican. “We are on course to achieve our targets.”