Sime Darby Property Q2 net profit falls 5%

PETALING JAYA: Sime Darby Property Bhd’s net profit fell 5.1% to RM138 million for the second quarter ended Dec 31, 2017, from RM145.4 million in the previous corresponding period on higher taxation.
Revenue for the quarter surged 65.4% to RM677 million, compared with RM409.35 million in the same period in 2016.
On its prospects, the group said the domestic property sector continues to remain sluggish due to weak market sentiment and buyers continued cautiousness, more so with the latest Bank Negara interest rate hike by 0.25%.
Notwithstanding the market challenges, it said the medium to longer term prospects remain positive and the underlying demand for properties in strategic locations and at the right pricing points, especially for landed properties, remain resilient.
Moving forward, the group said it will focus more on the launches of medium range landed properties in its townships of City of Elmina, Bandar Bukit Raja and Serenia City in Selangor and Bandar Universiti Pagoh in Johor.
Sime Darby Property said the company targets to launch about 1,900 units of properties with combined gross development value of RM1.5 billion in the second half of financial year 2018.
The group said it is also driving to reduce its unsold inventories through active sales promotions and campaigns.
Barring unforeseen circumstances, the group said it expects the results for the financial year ending June 30, 2018 to be satisfactory.
For the six-month period, its net profit jumped 90.1% to RM559.8 million, against RM294.5 million a year ago, while revenue up 33.6% to RM1.14 billion, from RM853.7 million previously.
Its share price closed lower two sen or 1.46% at RM1.35 with 3.2 million shares done.