Friday 29 Mar 2024
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KUALA LUMPUR (Aug 28): Improved contribution from its property development segment boosted Sime Darby Property Bhd's earnings by more than four-fold to RM205.26 million in the second quarter ended June 30, 2019 (2QFY19) against RM46.57 million a year ago.

Earnings per share rose to 3 sen, from 0.7 sen last year, according to a filing to Bursa Malaysia today.

The property developer has declared a first interim single tier dividend of one sen per share for the financial year ending Dec 31 (FY19), payable on Oct 22. In comparison, the company paid three sen per share in the same period last year.

Revenue was 40.26% higher at RM865.9 million, versus RM617.37 million in 2QFY18.

For the cumulative six months, net profit surged more than five-fold to RM470.33 million, against RM80.24 million in the same period last year, while revenue jumped 22.45% to RM1.44 billion, from RM1.18 billion a year ago.

The developer attributed higher earnings in the first half to one-off gains derived from the disposal of properties in Singapore amounting to RM208.8 million. For instance, the preceding quarter had included disposal gains on Darby Park Executive Suites in Singapore of RM203.4 million.

Sime Darby Property said the group's future prospects are underpinned by its continuous commitment to grow core profit, reduce inventories, and to maintain its sales momentum.

In 1HFY19, it achieved sales of RM1.4 billion, with total unbilled sales of RM1.5 billion.

The group targets to launch new properties from its Affordable Collection of below RM500,000 per unit, as well as mid-range products of RM500,000 to RM800,000, via the ongoing Spotlight 8 Campaign.

"The group is committed to its SHIFT20 transformation plan to expand into the key growth sector of industrial and logistics development to increase its profit and recurring income base.

"This will focus on build-to-suit and lease assets as well as managed industrial parks in City of Elmina, Bandar Bukit Raja, Serenia City, Malaysia Vision Valley 2.0 and Kota Elmina," it said.

To actively manage its land bank, the group is pursuing monetisation of non-core strategic land to unlock value from its sizeable land bank.

The board of directors expect FY19 results to be satisfactory, barring unforeseen circumstances.

Sime Darby Property closed one sen or 1.27% higher at 80 sen today, valuing the company at RM5.44 billion. Over the past year, its share price has shrunk by a third from RM1.21.

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