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Sime Darby Property 1Q net profit skyrockets on property market recovery

KUALA LUMPUR (May 27): Sime Darby Property Bhd saw its net profit skyrocket to RM60.61 million in its first quarter ended March 31, 2021 (1QFY21), from RM2.72 million in the corresponding quarter last financial year.

In a bourse filing, the group said the improved bottom-line performance was mainly attributable to the recovery in the property development segment this year, from a year ago during the imposition of the first movement control order (MCO 1.0).

Meanwhile, quarterly revenue also increased by 23.7% year-on-year (y-o-y) to RM589.49 billion, from RM476.74 million in 1QFY20.

Its City of Elmina, Serenia City, Serini, The Ridge and Senada developments contributed to the higher earnings in the property development segment.

The property developer did not declare any dividends this quarter.

On a quarter-on-quarter (q-o-q) basis, the group was back in the black from a RM55.93 million loss. Quarterly revenue declined by 16.4% from RM705.19 million.

The group achieved RM630.2 million in sales during the quarter, with two new launches in 1QFY21 garnering an average take-up rate of over 90%.

“The encouraging results signal the effectiveness of business strategies and planning deployed in response to the challenges brought about by the Covid-19 pandemic. Constant monitoring and review of market conditions continue to be undertaken to ensure the group’s agility and resilience in navigating the challenges that have persisted since the outbreak of the Covid-19 pandemic. 

"Sime Darby Property has responded effectively to the challenges faced during the pandemic with strategic and tactical plans to fully transform the group into a sustainable real estate development company by 2025.

"The group continues to focus on accelerating its income base diversification, executing tactical launch plans at prime locations with the right price points, unlocking value through active land bank management and monetisation planning, as well as continuous vigilant cost management in FY21,” it said.

Sime Darby Property said it is cautiously optimistic on its FY21, noting that market recovery will be heavily dependent on containment measures undertaken and the success of the vaccination programme in the country.

Its unbilled sales stand at RM1.7 billion and as of March 31, it saw RM800 million in bookings.

Shares in Sime Darby Property were trading 0.83% or half a sen higher at 61 sen, valuing it at RM4.15 billion at noon market close.

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