KUALA LUMPUR, May 21 — Sime Darby Property Bhd’s net profit for the first quarter ended March 31, 2020 (Q1 2020), slipped 94.7 per cent to RM14.15 million from RM265.08 million registered in the same quarter last year.
Revenue fell 17.1 per cent to RM476.74 million from RM575.13 million previously, the company said in a filing with Bursa Malaysia today.
The group attributed the decline in the current quarter’s performance to the significant decrease in contribution from core business segments, coupled with other losses and higher finance costs.
In separate statement, Sime Darby Property said for the quarter under review, it has launched 583 units in Elmina East, its flagship township, which consists of 513 units of landed linked homes priced from RM578,000 onwards and 70 units of two-storey and three-storey commercial shops priced from RM1.39 million onwards.
“The company has witnessed positive responses from prospective buyers,” it added.
Meanwhile, total unbilled sales for its property development segment stood at RM1.5 billion, while bookings worth RM912 million have been secured, the company said, adding that it remains focused on converting it into signed sales and will continue driving new leads.
Moving forward, Sime Darby Property expects its performance in the coming months to be adversely affected by the spillover effects of the pandemic on consumers’ purchasing power, resulting in a moderation of property sales.
“The company will continue to monitor the situation and will revise our financial targets, including announcement of latest sales estimates, once there is more clarity of the situation,” it said.
Group managing director Datuk Azmir Merican said the company will streamline its efforts to promote the right product launches as well as improve on processes and systems.
“We will also prioritise our areas of focus to what will make a difference for 2020, particularly strengthening our resilience against the global and domestic macroeconomic headwinds and the market uncertainties brought by the pandemic, which is unprecedented in its magnitude,” he added. — Bernama
