by S BIRRUNTHA / pic by MUHD AMIN NAHARUL

SIME Darby Property Bhd (SDP) is confident of achieving its full-year sales target of RM2.4 billion, after recording RM1.3 billion in the first half of the year (FY21).

Group MD Datuk Azmir Merican Azmi Merican (picture) said 2H21 would be more challenging amid the ongoing movement restrictions.

He said, although the real estate sector was allowed to resume operations at the end of July, the process to restore the company’s operational momentum would take some time to meet strict standard operating procedures.

“The gross development value of our launch plans for 2H21 is RM2.1 billion.

“In addition, our unbilled sales of RM1.8 billion as of June 30, 2021, remains a strong indicator of revenue visibility for the group,” he said during a virtual financial result briefing yesterday.

SDP rebounded in its second quarter ended June 30, 2021 (2Q21), with a net profit of RM19.91 million, compared to a net loss of RM93 million last year.

Revenue increased 74.5% to RM502.83 million from RM288.23 million in 2Q20, mainly contributed by strong sales in industrial and residential properties.

The group declared a dividend of one sen per share for the financial year ending 2021, payable by Nov 16.

The property developer noted that its sales of residential products have improved significantly compared to the previous year due to its intensive online marketing efforts, supported by the government’s Home Ownership Campaign.

The performance was mainly attributed to the higher sales and development activities in the City of Elmina, Elmina Business Park, Serenia City, Bukit Jelutong, Bandar Ainsdale, Nilai Impian, The Glades and Senada projects, coupled with higher sales of completed stocks in KL East and Serini.

For FY21, the group recorded a net profit of RM80.51 million against a net loss of RM90.28 million a year earlier, while revenue was higher at RM1.09 billion from RM764.96 million.

SDP’s cash balances stood at RM698.3 million as of June 30, 2021, out of which the group achieved positive operating and financing cashflow of RM95 million and RM13.3 million respectively.

The group’s net gearing ratio remains healthy at 0.3 times.

Azmir Merican said the group would focus on enhancing resilience through strengthened operations and financial position.

“We are accelerating the group’s income diversification through the industrial landed and lots product segment, which now comprises 17.8% of our sales portfolio.

“This is coupled with our focus to launch projects at strategic locations with the right price points, unlock value through active landbank management, as well as exercise vigilant cost control for the remainder of the financial year,” he said.

He said these efforts would strengthen operations and financial position, providing the group a solid footing to seize opportunities when the market recovers.

SDP shares closed 0.79% lower to 63 sen yesterday to give it a market capitalisation of RM4.25 billion.