Sime Darby Property’s 1Q net profit falls 94.7% to RM14.15 mil

KUALA LUMPUR: Sime Darby Property Bhd’s net profit for the first quarter ended March 31, 2020 falls 94.7% to RM14.15 mil from RM265.08 mil in the same quarter last year.

Revenue fell 17.1% to RM476.74 mil from RM575.13 mil previously, the company said in a filing with Bursa Malaysia today.

The group attributed the decline in 1Q20’s performance to the significant decrease in contribution from core business segments, coupled with other losses and higher finance costs.

In a separate statement, Sime Darby Property said in 1Q20 it launched 583 units in Elmina East, its flagship township, which consists of 513 landed linked homes priced from RM578,000 and 70 two-storey and three-storey commercial shops priced from RM1.39 mil.

“The company has witnessed positive responses from prospective buyers,” it added.

Meanwhile, total unbilled sales for its property development segment stood at RM1.5 bil while bookings worth RM912 mil have been secured, the company said, adding that it remains focused on converting these into signed sales and will continue driving new leads.

Moving forward, Sime Darby Property expects its performance in the coming months to be adversely affected by the spillover effects of the pandemic on consumers’ purchasing power, resulting in a moderation of property sales.

“The company will continue to monitor the situation and will revise our financial targets, including announcement of latest sales estimates once there is more clarity of the situation,” it said.

Group managing director Datuk Azmir Merican said the company will streamline its efforts to promote the right product launches as well as improve on processes and systems.

“We will also prioritise our areas of focus to what will make a difference for 2020, particularly strengthening our resilience against the global and domestic macroeconomic headwinds and the market uncertainties brought by the pandemic,” he added. – May 21, 2020, Bernama

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