PETALING JAYA: Sime Darby Property Bhd (SDP) plans to cautiously tread financial year 2023 (FY23) with more practical ambitions in view of the ongoing industry challenges of labour issues and rising raw material prices as well as another overnight policy rate hike anticipated this year.
SDP group managing director Datuk Azmir Merican said it will continue to undertake landbank management and monetisation activities with the proposed acquisition of up to 948 acres of land in Klang and disposal of non-core lands.
“It is wise of us to have a lower target. But we will be agile, so if the markets are good, we can take advantage of the condition,” he said during its virtual full-year financial briefing.
In the financial year 2022 (FY22), SDP recorded its highest sales achievement since its 2017 demerger of RM3.7 billion, supported by RM2.6 billion gross development value worth of new launches.
The group recorded over two-fold increase in net profit to RM315.84 million from RM146.89 million during the year, underpinned by higher revenue from all three business segments especially for the property development segment.
FY22’s revenue increased 23.7% to RM2.74 billion from RM2.22 billion in the same period of the financial year 2021 (FY21).
All three business segments – property development, investment and asset management, and leisure – recorded improved performance, especially the property development segment as backed by sales of industrial and residential products throughout the year and increased on-site development activities towards the end of the year.
The investment and asset management as well as the leisure segment’s performance have also turned around due to the overall improved economic environment.
“The result was complemented by our wide range of products. We were indeed in the eye of the storm, particularly with labour-related challenges and escalating material prices.
“Although our full-year revenue did not expand as much as we would like to, it was still very respectable. More importantly, we maintain a solid margin for the full year at 30%,” said Azmir.
For the fourth quarter of the year (Q4’22), its net profit grew 64.3% to RM103.15 million from RM62.77 million a year earlier on the back of higher revenue.
Revenue for Q4’22 grew 29.6% to RM956.9 million from RM738.44 million last year, with the property development segment doubling its performance as compared to the same quarter last year.
“The improved operational performance was attributable to strong property sales of industrial and residential products and increased on-site development activities towards the end of the current quarter,” said Azmir.
Sime Darby Property is Malaysia’s biggest property developer in terms of land bank, with approximately 15,000 acres available land bank with a total estimated GDV of RM100 billion.
