Sime Darby Property’s profit before tax grows 41% for 1HFY2022

• Profit after tax and minority interest increased 75.3% y-o-y to RM156.6 million.
• SDP also registered RM1.9 billion in sales for the six months ended June 30, 2022 (1HFY2022), marking a 48% increase from the RM1.3 billion achieved in the same period last year.
• Revenue in the first half of the year was impacted by the ongoing nationwide labour shortage issue, “limiting the acceleration of site progress”.

PETALING JAYA (Aug 25): Sime Darby Property Bhd (SDP) recorded revenue and profit before tax (PBT) of RM1.1 billion and RM229 million, representing an increase of 0.5% and 40.9% year-on-year (y-o-y), the developer announced today.

SDP also registered RM1.9 billion in sales for the six months ended June 30, 2022 (1HFY2022), marking a 48% increase from the RM1.3 billion achieved in the same period last year.

Profit after tax and minority interest increased 75.3% y-o-y to RM156.6 million.

The group’s property development segment contributed 91.5% of the group’s total revenue.

With strong development site progress at its major townships from June onwards, plus sale of products with higher margins, SDP said it registered higher revenue quarter-on-quarter for 2QFY2022.

It said that revenue in the first half of the year was impacted by the ongoing nationwide labour shortage issue, “limiting the acceleration of site progress”.

But PBT still increased by 29.5% y-o-y “mainly driven by higher margin products and overall development site progress compared to the impact of the Full Movement Control Order enforced in June 2021; plus gains from disposal of industrial land to the Industrial Development Fund via dilution of interest”, it said in a media release.

Meanwhile, the Investment & Asset Management segment also registered “good performances in terms of revenue and PBT” which grew by 21.1% and 35.2% y-o-y respectively, to RM52.3 million and RM29 million, “buoyed by higher revenue from KL East Mall that reflected an improved occupancy rate of 80% versus last year’s 73%, as well as increased footfall”. This was also due to the “improved share of results from Melawati Mall, which also recorded higher footfall in the period under review”.

Confident of surpassing sales target

As for Leisure, the reopening of business activities in 4QFY2021 contributed to the segment’s RM41.2 million revenue.

The RM8.9 million gain from the disposal of a property in Vietnam also boosted the PBT for this segment by over 100% from last year’s loss before tax of RM6.3 million.

SDP group managing director, Datuk Azmir Merican said the group’s strong performance in 1HFY2022 was driven by steady product launches during the pandemic period which registered commendable take-up rates.

“SDP’s first half performance has outperformed expectations to date and we are confident of surpassing the group’s FY2022 sales target of RM2.6 billion, underpinned by new launches worth RM2.8 billion in gross development value.

“For the remainder of the year, we are looking forward to many exciting new developments including the launch of the Battersea Power Station in the UK in October, and ongoing progress of our Industrial Development Fund through the joint venture with LOGOS Property, a new source of recurring income for the Group in line with its long-term strategy,” Azmir said.

The developer’s unbilled sales also rose to RM3.4 billion as at June 2022 compared to RM1.8 billion in the corresponding period last year. This was mainly driven by high-rise projects at Jendela Residences in KLGCC Resort, Kuala Lumpur and Maya Ara Residences in Ara Damansara, Selangor as well as industrial properties at Bandar Bukit Raja, Selangor and XME Business Park in Nilai Impian, Negeri Sembilan.