KUALA LUMPUR: Sime Darby Property Bhd's net profit rose 158.2 per cent to RM144.92 million in the third quarter (Q3) ended Sept 30, 2023 from RM56.13 million a year ago.
The company's impressive revenue for Q3 2023 outperformed the preceding quarter by 52.4 per cent at RM1.0 billion, with pre-tax profit doubling to RM228.5 million from RM114.3 million.
SD Property said the strong quarter performance was driven by the property development segment which saw a significant improvement with 56.7 per cent increase in revenue to hit RM1.0 billion.
"This is due to higher sales from residential and industrial products and increased on-site progress development," it said.
Over nine months SD Property's net profit rose to RM276.66 million from RM212.69 million last year, while its revenue increased to RM2.42 billion from RM1.79 billion previously.
It achieved RM2.5 billion sales in the period under review and is on track to surpass its financial year 2023 (FY23) sales target of RM2.7 billion.
Group managing director Datuk Azmir Merican said the company's sales momentum thus far is indicative of its diverse product offerings with the right pricing at the right locations.
"The consistent success of our residential landed, residential high-rise and industrial products highlights the market's positive response to our strategic direction and product developments.
Azmir said with the Malaysian gross domestic product (GDP) expected to grow by about 4.0 per cent in 2023, the company expects the property market outlook to improve, supported by domestic demand.
He said the company's robust financial position, cash reserve of RM661.9 million and net gearing ratio of 27.4 per cent as of Sept 30 further solidifies its readiness for future endeavours.
"We have an exciting launch pipeline for Q4 2023 worth RM791.2 million in GDV across our townships, with the strong momentum built up to date, we are confident in our ability to meet our financial and operational targets for the year," he added.
