![](https://www.klpropertytalk.com/wp-content/uploads/2024/02/sime-darby-propertys-q4-net-profit-up-27-torm131mil_65d881aad44c4.jpeg)
PETALING JAYA: Sime Darby Property Bhd (SDP) posted a 27.25% rise in net profit to RM131.26 million in the fourth quarter ended Dec 31, 2023 (Q4 FY2023) from RM103.15 million a year ago on the back of its strong property sales performance.
Quarterly revenue rose by 5.83% to RM1.01 billion from RM956.9 million previously.
For the full year, net profit jumped 29.15% to RM407.91 million from RM315.84 million in FY2022, while revenue increased by 25.34% to RM3.44 billion from RM2.74 billion previously.
SDP declared a second single tier dividend of 1.5 sen per share in Q4 FY2023. This brings total dividends for FY2023 to 2.5 sen per share, amounting to RM170 million.
The property giant said the increase in revenue was primarily attributed to the robust sales performance and higher site progress in major townships within the property development segment, supported by contributions from non-core land monetisation activities.
“Our exceptional performance, coming on the heels of FY2022’s results demonstrate our operational and financial competencies, against the backdrop of an uncertain operating environment in 2023 as a result of supply chain constraints, foreign exchange movement and labour issues,” said group managing director Azmir Merican.
He said the changes in the exchange rate, particularly a 1% drop in the ringgit against the USD, could raise construction costs by 0.15-0.25% due to imported materials which may impact SDP’s profits, if it continues.
SDP said it foresees a positive momentum evidenced by rising sales volume, new property launches, successful completions as well as positive government policies and incentives.
The group achieved RM3.3 billion in sales in FY2023, surpassing its initial target of RM2.7 billion. It added it had maintained its unbilled sales of RM3.6 billion, which will provide further earnings visibility for the next three years.
“SDP is expanding its retail and placemaking components with the Q2 opening of its second wholly-owned mall, the Elmina Lakeside Mall in the City of Elmina.
“The group is optimistic about growth opportunities in this sector to broaden recurring income streams in the long term,” said Azmir.
SDP and Lagenda Properties have also formed a 50:50 joint venture (JV), to undertake the development of affordable homeownership projects, with their inaugural project in Gurun, Kedah.
The project, spanning 249 acres, aims to deliver more than 3,000 affordable homes, with the first phase slated for launch by late 2024 or early 2025.
At mid-day break, its share price was up by 5 sen or 6.5% at 82 sen, giving it a market capitalisation of RM5.5 billion.
POST YOUR COMMENTS