Sime Darby Property targets RM2.3b sales in FY19

KUALA LUMPUR (Feb 28): Sime Darby Property Bhd has set a RM2.3 billion sales target for the financial year ending Dec 31, 2019 (FY19).

The property developer said for the six-month financial period ended Dec 31, 2018, it had surpassed its sales target of RM1 billion, reporting sales of RM1.34 billion for the period.

Meanwhile, its unbilled sales remain resilient at over RM2 billion. The group currently has under its belt more than 20,000 acres of land with a gross development value of about RM89 billion.

Yesterday, the group reported a maiden loss of RM347.5 million in the second quarter ended Dec 31, 2018, against a net profit of RM138.08 million in the previous year's corresponding quarter, which it blamed largely on an absence of disposal gains, high impairment of inventories, negative contribution from its Battersea project as well as a higher tax provision.

Quarterly revenue, however, was 12.1% higher at RM788.81 million, from RM703.63 million a year earlier.

Sime Darby Property group managing director Datuk Seri Amrin Awaluddin said despite the sluggish property market, the group expects to return to the black with satisfactory results for FY19.

"Having addressed our legacy assets and products, we expect an immediate return to profitability as operationally our performance has been positive. Our launches during the period were well received and we expect this to continue into the first half of 2019," Amrin told the press at a results briefing earlier.

Amrin said the group will continue with its efforts to reduce and monetize its non-core assets as well as to focus on launching mainly landed properties within the affordable to medium price range of RM500,000 to RM800,000 in its Bandar Bukit Raja, Elmina and Serenia townships.

And while the main focus is to launch residential properties, Amrin added the group has a medium- to long-term plan to expand into more industrial, logistic and commercial projects as a way to increase recurring income.

At 12.30pm, shares of Sime Darby Property fell 11 sen or 9.4% to RM1.06, for a market value of RM7.21 billion. —

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