Sime Darby Property’s 4Q net profit rises 27%, unbilled sales of RM3.6b provide three-year earnings visibility

• The property developer declared a second interim dividend of 1.5 sen per share, to be paid on May 8, bringing total dividends for FY2023 to 2.5 sen per share.

KUALA LUMPUR (Feb 23): Sime Darby Property Bhd’s net profit for the fourth quarter ended Dec 31, 2023 (4QFY2023) rose 27.25% to RM131.26 million from RM103.15 million a year earlier, thanks to strong top line contributions and higher profit from the property development segment.

Quarterly revenue increased 5.83% to RM1.01 billion from RM956.9 million a year earlier, according to the group in a local bourse filing on Friday.

The property developer declared a second interim dividend of 1.5 sen per share, to be paid on May 8, bringing total dividends for FY2023 to 2.5 sen per share.

Full-year net profit jumped 29.15% to RM407.91 million from RM315.84 million for FY2022, as annual revenue expanded by 25.34% to RM3.44 billion from RM2.74 billion previously.

In a statement accompanying the results, the group said that it achieved RM3.3 billion in sales in FY2023, which surpassed its initial target of RM2.7 billion. It noted that it had maintained its unbilled sales of RM3.6 billion, which will provide further earnings visibility for the next three years.

Consequently, the group also announced a RM3 billion sales target, and launches worth RM3.9 billion in gross development value, for FY2024.

“Sime Darby Property foresees a positive FY2024 evidenced by rising sales volumes, new property launches, successful completions, as well as positive government policies and incentives.

“The group is optimistic about growth opportunities in this sector to broaden recurring income streams in the long term,” it added.

At the time of writing on Friday, shares in Sime Darby Property had risen 2.61% or two sen to 78.5 sen, with a market capitalisation of RM5.30 billion. The counter had risen 26.62% since the beginning of this year.

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