Sime Darby Property doubles 2Q profit, raises dividend payout policy; Mah Sing buys Ampang land for RM1.92b project

Sime Darby Property’s 2Q net profit doubles to RM322.04m as it raises dividend payout policy to 40%–60%

Sime Darby Property Bhd’s net profit attributable to shareholders more than doubled to RM322.04 million for the second quarter ended June 30, 2026, from RM143.54 million a year earlier, according to its unaudited results released on Aug 24. Revenue rose 9.3% to RM1.16 billion, while profit before tax increased 82.5% to RM399.29 million.

The group declared a first interim single-tier dividend of 1.70 sen per share, compared with 1.50 sen a year earlier. Group managing director and chief executive officer Datuk Seri Azmir Merican said the revised policy reflected the expanding contribution of recurring income as the group develops industrial, logistics and data-centre assets. The quarter included RM120.4 million in fair value gains, principally from a built-to-lease data centre at Elmina Business Park and semi-detached factories in the City of Elmina. It also recorded improved joint-venture results following reversals of provisions relating to a Singapore asset disposal.

BIMB Securities estimated that DC1 at Elmina contributed about RM27 million in lease income during the quarter.

Mah Sing proposes RM186.17m Ampang land acquisition for RM1.92b M Araya

Mah Sing Group Bhd, through wholly owned Capitol Avenue Development Sdn Bhd, entered into conditional sale-and-purchase agreements to acquire three adjoining parcels totalling 14.3775 acres in Ampang, Hulu Langat, Selangor, for RM186.17 million.

The land is opposite AEON BiG Ampang and includes a 1.983-acre leasehold portion, for which Mah Sing intends to seek conversion to freehold, subject to regulatory approval. The developer plans to build M Araya, a serviced-apartment project with an estimated gross development value of RM1.92 billion. Indicative built-up areas range from 700 sq ft to 1,000 sq ft, with indicative prices starting from RM399,000. The project will be Mah Sing’s third development in Ampang, after M Suites and M City.

The acquisition cost works out to about RM297 per sq ft. RHB Research described the land cost as reasonable and identified M Araya as a potential sales contributor for the group’s FY2027 and FY2028.

IJM secures RM909.5m of semiconductor and medical-device contracts as quarterly profit rises

IJM Corporation Bhd’s wholly owned subsidiary IJM Construction Sdn Bhd secured two fast-track industrial contracts worth a combined RM909.5 million.

The first is a RM455 million contract for civil, structural and architectural works for an automated storage and retrieval system warehouse at a multinational technology company’s semiconductor facility in Kulim, Kedah. The second is a RM454.5 million contract to build a medical-device manufacturing facility for Intuitive Surgical Malaysia Sdn Bhd at Bandar Cassia Technology Park in Batu Kawan, Penang. Both projects are scheduled for completion in less than 18 months. The medical-device project is IJM Construction’s second in that segment.

Separately, IJM reported net profit of RM137.39 million for its first quarter ended June 30, 2026, up from RM95.60 million a year earlier, driven by its construction and manufacturing and quarrying divisions. The group said it was confident of delivering a better performance for the financial year ending March 31, 2027.

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The reporting season dominated property news. Sime Darby Property doubled its second-quarter net profit to RM322.04 million and introduced a dividend payout policy of 40% to 60% of PATAMI, excluding extraordinary items, as recurring income becomes a larger part of its earnings mix. IJM secured RM909.5 million of semiconductor and medical-device construction contracts and reported first-quarter net profit of RM137.39 million, up from RM95.60 million a year earlier, while Sunway Construction, Matrix Concepts and WCT also reported their latest results. On the deal front, Mah Sing proposed to acquire 14.3775 acres in Ampang for RM186.17 million for its RM1.92 billion M Araya development, while Axis REIT agreed to acquire industrial land and warehouse facilities in Klang for RM61 million. In policy developments, the housing ministry gathered proposals for Budget 2027, including the proposed reintroduction of the Home Ownership Campaign, ahead of the budget’s tabling on Oct 9.