SIME Darby Property Bhd has reported a significant surge in its net profit, more than doubling to RM161.96 mil for the second quarter ended June 30, 2024 (2Q24), compared to RM71.07 mil in the same period last year.
This robust performance was bolstered by a notable increase in revenue, which climbed to RM1.2 bil from RM688.92 mil previously.
The group’s earnings per share also saw a substantial improvement, rising to 2.40 sen from 1.00 sen in 2Q23.
For the cumulative six-month period (1H24), Sime Darby Property’s net profit reached RM285.54 mil, up from RM131.74 mil a year ago, while revenue grew to RM2.18 bil from RM1.37 bil. The strong financial results were attributed to sustained sales momentum across a diversified product mix and improved site progress within the property development segment.
Reflecting its solid performance, the group declared its first dividend for FY24 at 1.5 sen per share, amounting to a payout of RM102 mil.
Sime Darby Property also achieved its highest half-year sales performance, recording RM2.1 bil in sales for 1H24, a 40% increase from RM1.5 bil during the same period last year.
Sime Darby Property group managing director Datuk Seri Azmir Merican highlighted the exceptional first-half results as a testament to the group’s strategic alignment with market demands and enhanced operational efficiencies.
He noted that the group’s industrial, residential high-rise, and residential landed segments played a crucial role in achieving 60% of their RM3.5 bil sales target, underscoring the effectiveness of diversifying their product offerings.
“Building on this momentum, the group announced plans in May 2024 to construct Google’s hyperscale data centre, marking its entry into the data centre asset class. This move aligns with the group’s SHIFT25 strategy to boost recurring income.
“The 20-year lease, valued at RM2 bil with options for renewal, not only strengthens the group’s market presence but also taps into new opportunities in the rapidly expanding data centre sector,” he said in a statement today.
Moreover, Azmir pointed out that this period marks one of the strongest since the group’s demerger, solidifying its commitment to SHIFT25 targets. He also expressed optimism for continued momentum in the second half of FY24, driven by healthy demand and rising sales volumes.
As of June 30, 2024, Sime Darby Property maintains healthy unbilled sales of RM3.7 bil, ensuring revenue stability for the next three years. The group’s cash balances remain robust at RM603.7 mil, with a net gearing ratio of 22.3%.
Looking ahead, Azmir affirmed that the group’s ongoing transformation into a leading real estate company remains on track, with strategic initiatives well-positioned to achieve their targets and create long-term value for stakeholders.
“We are on course to achieve our targets and create value for all stakeholders by seizing current market opportunities while ensuring long-term growth and sustainability,” he added. – Aug 22, 2024
