Sime Darby Property (Simeprop)’s 1H23 net profit of RM126mn made up 38.9% and 41% of our and consensus’ full year forecast respectively. Overall, we deem this as within our estimate in anticipation of stronger earnings in 2H23 on the back of strong sales performance and high unbilled sales. On quarterly basis, 2Q23 core earnings increased by 14% YoY due to resilient performance of stronger sales and profit contribution from both industrial and residential products. We remain optimistic on Simeprop's business prospects, particularly in the property development segment, reflecting the increase in on-site development activities in Bandar Bukit Raja, Nilai Impian, Elmina Business Park, and Serenia City townships. Maintain a BUY call with a higher TP of RM0.86, pegged at 0.6x P/B to FY24F BVPS of RM1.43. This implies a +0.6 Std. Dev. above its 5-yr historical average forward P/B of 0.5x.
Our call. Maintain a BUY call with a revise TP of RM0.86, pegged at 0.6x P/B to FY24F BVPS of RM1.43. This implies a +0.6 Std. Dev. above its 5-yr historical average forward P/B of 0.5x. We believe this is justifiable given steady earnings improvement moving forward, owing to (i) the monetization of its land bank, (ii) recognition from on-site progress property projects, (iii) an increase in recurring income from booming demand for industrial properties and (iv) strong 2023 new launch pipeline of RM4bn (FY22: RM2.6bn)
Source: BIMB Securities Research - 29 Aug 2023
Chart | Stock Name | Last | Change | Volume |
---|
2024-08-24
SIMEPROP2024-08-23
SIMEPROP2024-08-23
SIMEPROP2024-08-23
SIMEPROP2024-08-23
SIMEPROP2024-08-23
SIMEPROP2024-08-23
SIMEPROP2024-08-23
SIMEPROP2024-08-23
SIMEPROP2024-08-23
SIMEPROP2024-08-23
SIMEPROP2024-08-23
SIMEPROP2024-08-23
SIMEPROP2024-08-22
SIMEPROP2024-08-22
SIMEPROP2024-08-22
SIMEPROP2024-08-22
SIMEPROP2024-08-22
SIMEPROP2024-08-21
SIMEPROP2024-08-21
SIMEPROP2024-08-21
SIMEPROP2024-08-21
SIMEPROP2024-08-20
SIMEPROP2024-08-20
SIMEPROP2024-08-20
SIMEPROP2024-08-19
SIMEPROP2024-08-19
SIMEPROP2024-08-19
SIMEPROP2024-08-18
SIMEPROP2024-08-16
SIMEPROP2024-08-16
SIMEPROP2024-08-16
SIMEPROP2024-08-16
SIMEPROP2024-08-16
SIMEPROP2024-08-15
SIMEPROP2024-08-15
SIMEPROP2024-08-15
SIMEPROP2024-08-15
SIMEPROP2024-08-14
SIMEPROP2024-08-14
SIMEPROP2024-08-14
SIMEPROP2024-08-13
SIMEPROP2024-08-13
SIMEPROPCreated by kltrader | Aug 12, 2024
Created by kltrader | Aug 12, 2024
Created by kltrader | Aug 09, 2024
Created by kltrader | Aug 09, 2024