PETALING JAYA: Sime Darby Property Bhd (SDP) experienced a more than twofold increase in net profit, surging to RM144.92 million in the third quarter ending Sept 30, 2023 (Q3 FY2023), compared to RM56.13 million reported a year ago.

Meanwhile, its revenue rose by 52.4% to RM1.05 billion from RM689.3 million recorded in the corresponding quarter of the previous year.

In a statement, the property developer said the strong quarter performance is driven by its property development segment.

“The segment saw a significant improvement with a 56.7% increase in revenue to hit RM1 billion, driven by higher sales from residential and industrial products and increased on-site progress development,” SDP said in a filing with Bursa Malaysia today.

The earnings per share also rose to 2.10 sen, marking a significant increase from the previous 80 sen.

For the cumulative nine months ended Sept 30, 2023 (9M FY2023), SDP experienced a surge in net profit, reaching RM276.55 million, from RM212.68 million, bolstered by increased revenue of RM2.42 billion, from RM1.78 billion.

This positive shift was attributed to improved site progress and successful sales accomplishments.

The group also achieved sales of RM2.5 billion for the period under review and is on track to surpass its FY2023 target of RM2.7 billion.

SDP group managing director Azmir Merican noted that the group’s sales momentum is a reflection of its diversified product offerings, characterised by appropriate pricing in strategically advantageous locations.

“The consistent success of our residential landed, residential high-rise and industrial products highlights the market’s positive response to our strategic direction and product developments,” Azmir said during SDP’s virtual media briefing for the 9M FY2023 announcement.

On its outlook, the group said the Malaysian gross domestic product (GDP) is expected to grow by approximately 4% in 2023, prompting the property market’s outlook to improve in line with the economy, supported by domestic demand.

As of Sept 30, 2023, SDP holds RM661.9 million in cash reserves with a net gearing ratio of 27.4%, indicating readiness for future endeavours.

“We have an exciting launch pipeline for Q4 2023 worth approximately RM791.2 million in gross development value (GDV) across our townships, with the strong momentum built up to date, we are confident in our ability to meet our financial and operational targets for the year,” said Azmir.

At 12.30pm, SDP’s share price rose 2.5 sen (4.20%) to 62 sen, valuing the group at RM4.18 billion.