Public Investment upgrades Sime Darby Property rating to ‘outperform’

A general view of the Sime Darby Property headquarters in Petaling Jaya October 2, 2019. — Reuters pic
A general view of the Sime Darby Property headquarters in Petaling Jaya October 2, 2019. — Reuters pic

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KUALA LUMPUR, June 18 — Public Investment Bank Bhd has upgraded its rating for Sime Darby Property Bhd (SDPR) to ‘outperform’ with an unchanged target price of 79 sen as it is seen on track to surpass its financial year 2021 (FY2021) sales target. 

In a note, the investment bank said after the kitchen-sinking exercise of writing off more than RM550 million last year, SDPR is emerging stronger with focus on digitalisation and cost and operation efficiency.

“The group will also grow its industrial and logistics developments to support new sales for the year,” it said.

Public Investment said in the first quarter of FY2021, the group launched RM111 million worth of properties with encouraging take-up rate of more than 90 per cent.

“For the remaining quarters, it has lined up projects with a combined gross development value of RM3 billion.

“In second quarter FY2021 alone, it has projects worth RM1.63 billion to be launched which among others include luxury high-rise Jendela Residences at KLGCC Resort, new phases at City of Elmina, Bandar Bukit Raja and Bandar Ainsdale, as well as introducing an industrial township spanning 161.8 hectares,” it added.

As at 10.40am, SDPR share price stood at 63 sen per share. — Bernama

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