KUALA LUMPUR, Aug 26 — Sime Darby Property Bhd’s net profit for the second quarter ended June 30, 2021 (Q2 2021) jumped to RM19.90 million from a loss of RM92.99 million in Q2 2020.

Revenue for the quarter under review increased to RM502.82 million from RM288.22 million previously, mainly attributable to its property development segment which registered strong sales in the industrial and residential products.

In a filing with Bursa Malaysia today, the property developer said 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.

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“The performance is mainly attributable to the higher sales and development activities in 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,” it said.

As for its investment and asset management segment, Sime Darby Property said that the segment recorded a lower loss of RM0.6 million compared to the preceding quarter’s loss of RM2.6 million, mainly due to lower sales and marketing activities.

Meanwhile, its leisure segment’s revenue declined by 11.6 per cent, mainly due to lower contribution from golfing activities, events and functions following the imposition of the movement control order (MCO) towards the end of the quarter.

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On prospects, the group said it remains on track to meet the RM2.4 billion sales target set for the financial year 2021, supported by strong year-to-date sales of RM1.3 billion and planned launches with a gross development value of RM2.1 billion in the second half of the year (2H 2021), with unbilled sales of RM1.8 billion.

“The group will accelerate its income diversification into the industrial and logistics development segment, launch products at strategic locations with the right price points, unlock value through active land bank management and monetisation, as well as exercise vigilant cost management,” it said.

Group managing director Datuk Azmir Merican said the property developer expects positive earnings across 2H 2021 with continued efforts on enhancing resilience through strengthened operations and financial position.

“The group is expected to accelerate income diversification through the industrial landed and many product segments which now comprise 17.8 per cent of the sales portfolio,” he said In an online media briefing on the group’s financial results today.

He also said the recent introduction of its virtual sales gallery allows the public to access its collection of products with a dedicated in-house team who are assigned to provide online and offline sales consultation to potential homebuyers.

Azmir added that strategically planned launches of 2,165 units in 2H 2021 are expected to have a healthy product mix of industrial, commercial, high-rise residential, statutory and landed residential properties.

However, Azmir pointed out that the group expects 2H 2021 to remain challenging for the property sector due to the disruptions from the ongoing MCO.

“While construction in the property sector has been allowed to resume as at end-July 2021, it will take time for the group’s operations to gain momentum as it will operate under strict standard operating procedures,” he explained.

Nevertheless, he said the group stands resilient against the upcoming risks and challenges to harness opportunities for a strong rebound.

At today’s close, the share price of Sime Darby Property stood at 63 sen with 602,300 units transacted. — Bernama