KUALA LUMPUR: Sime Darby Property Bhd is optimistic about its outlook for financial year 2022 (FY22), projecting a gross profit margin of between 20 per cent and 25 per cent.
The property development group has also set a sales target of RM2.6 billion for the year, supported by development projects worth RM2.8 billion in gross development value (GDV).
Group managing director Datuk Azmir Merican said as the economy rebounds following the lifting of all movement control orders in the fourth quarter of 2021 (Q4 2021), the people’s confidence in the local economy will lead them to purchase more properties.
“FY21’s results demonstrated the company’s resilience, and we are optimistic that 2022 will be the year of recovery,” he told a virtual media briefing on the company’s FY21 results.
For Q1 2022, the company plans to launch properties with GDV totalling RM788.1 million, comprising residential units (817 landed; 122 high-rise), industrial (two) and commercial units (one), as well as statutory units (154).
Azmir said the company is taking steps to mitigate and minimise the cost pressure from rising raw material prices by improving productivity through automation and technology, among others.
Meanwhile, moving forward, he said the company is positioning itself to become a real estate company by 2025 throught its SHIFT25 business model.
“We are also looking into building investment asset management capabilities, generating income as an asset manager which gives predictability of earnings,” he said.
For the full year ended Dec 31, 2021 (FY21), the company’s net profit surged 127 per cent to RM136.9 million from a net loss of RM501.57 million in FY20, while its revenue rose 7.6 per cent to RM2.22 billion from RM2.06 billion a year ago.
It had recorded an impressive RM3 billion in sales for the year, exceeding the group’s FY21 sales target of RM2.4 billion.
The property group also registered its highest number of new launches at 3,594 property units with GDV worth RM3.7 billion during the year, recording a notable average take-up rate of 87 per cent. – BERNAMA
