RESULTS UPDATE
Friday, August 22, 2025
FBMKLCI: 1,592.87
Sector: Property
THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY*
Sime Darby Property Bhd: A Solid 1H25 Performance
Thiam Chiann Wen
Tel: +603-2167 9615
cwthiam@ta.com.my
www.taonline.com.my
Review
- Sime Darby Property (SDP)’s 1H25 core net profit of RM258.1mn came in within expectations, accounting for 44% and 47% of our and consensus full-year forecasts, respectively. We expect stronger 2H earnings, driven by accelerating progress billings from ongoing projects.
- A first interim single-tier dividend of 1.5sen/share was declared, matching the amount declared in the corresponding period last year.
- 1H25 revenue and core net profit fell 11% and 9% YoY to RM1.9bn and RM258.1mn, respectively, mainly due to softer property development earnings as industrial projects remained in early construction stages, versus stronger industrial and land sales a year earlier. In contrast, the investment & asset management segment recorded a sharp rebound, with revenue rising 34% YoY to RM78.0mn and a turnaround to RM5.9mn PBT, supported by contributions from Elmina Lakeside Mall, KL East Mall, and new industrial assets. The leisure segment saw revenue growth of 3% to RM52.3mn on festive event activities, though losses widened to RM4.2mn on higher operating costs.
- Sequentially, SDP delivered a stronger quarter with revenue up 22% QoQ to RM1.1bn and core net profit rising 23% to RM142.5mn. The improvement was led by higher property development earnings from key townships such as City of Elmina, Bandar Bukit Raja, and Serenia City, supported by land sales and a well-balanced product mix. The leisure segment also benefited from festive-driven banqueting and F&B activities, helping narrow losses, though overall performance was partly offset by a loss in investment & asset management due to pre-operating costs for KLGCC Mall.
- SDP achieved new property sales of RM2.0bn, representing 56% of its full-year target of RM3.6bn. Industrial products led the performance, contributing 40% of total sales. Unbilled sales rose to RM3.9bn, the highest level since SDP’s demerger in 2017.
Impact
- No change to our FY25-27 earnings forecasts.
Outlook
- In 1H25, SDP rolled out RM2.2bn worth of launches, meeting 55% of its RM4.0bn full-year target. Residential landed products led the mix (39%), followed by high-rise residential (25%), industrial (20%) and commercial (16%). Key projects included Elmina Ridge 2 (GDV: RM272mn), which saw a strong 90% take-up at its Phase 1 soft launch, and SJCC East One (GDV: RM533mn), which achieved 80% take-up within hours of launch.
- With RM2.0bn in property sales already secured in 1H25 and a further RM1.6bn in bookings as of 10 Aug 2025, we believe management’s RM3.6bn sales target is well within reach.
Share Information
| Bloomberg Code | SDPR MK |
| Stock Code | 5288 |
| Listing | Main Market |
| Share Cap (mn) | 6,800.8 |
| Market Cap (RMmn) | 10,269.3 |
| 52-wk Hi/Lo (RM) | 1.81/1.07 |
| 12-mth Avg Daily Vol (‘000 shrs) | 15,223.1 |
| Estimated Free Float (%) | 35.3 |
| Beta | 2.1 |
Major Shareholders (%)
| PNB | (53.6%) |
| EPF | (13.6%) |
| KWAP | (6.3%) |
Forecast Revision
| FY25 | FY26 | |
|---|---|---|
| Forecast Revision (%) | 0.0 | 0.0 |
| Net profit (RMmn) | 586.2 | 627.5 |
| Consensus | 552.5 | 601.9 |
| TA’s / Consensus (%) | 106.1 | 104.3 |
| Previous Rating | Buy (Maintained) | |
| Consensus Target Price (RM) | 1.85 | |
Financial Indicators
| FY25 | FY26 | |
|---|---|---|
| Net gearing (%) | 22.6 | 31.3 |
| CFPS (sen) | 0.0 | (0.1) |
| P/CFPS (x) | 34.2 | 0.0 |
| ROE (%) | 5.5 | 5.7 |
| ROA (%) | 3.4 | 3.5 |
| NTA/Share (RM) | 1.6 | 1.6 |
| Price/ NTA (x) | 1.0 | 1.0 |
Scorecard
| % of FY | ||
|---|---|---|
| vs TA | 44.0 | Within |
| vs Consensus | 47.0 | Within |
Share Performance (%)
| Price Change | SDPR | FBM KLCI |
|---|---|---|
| 1 mth | (5.0) | 4.5 |
| 3 mth | 2.7 | 3.1 |
| 6 mth | (3.2) | 0.1 |
| 12 mth | 9.4 | (2.6) |
(12-Mth) Share Price relative to the FBMKLCI
Valuation
We maintain our Buy recommendation on SDP with an unchanged TP of RM2.05/share, based CY26 P/Bk multiple of 1.2x and incorporating a 5% ESG premium.
Earnings Summary
| FYE Dec | 2023 | 2024 | 2025F | 2026F | 2027F |
|---|---|---|---|---|---|
| Revenue | 3,436.9 | 4,250.8 | 4,545.4 | 4,721.1 | 4,803.1 |
| EBITDA | 658.6 | 956.0 | 1,107.1 | 1,176.0 | 1,230.0 |
| EBITDA margin (%) | 19.2 | 22.5 | 24.4 | 24.9 | 25.6 |
| Pretax profit | 610.3 | 780.0 | 944.3 | 1,001.1 | 1,050.4 |
| Reported net profit | 407.9 | 502.2 | 586.2 | 627.5 | 660.6 |
| Normalised net profit | 439.7 | 513.3 | 586.2 | 627.5 | 660.6 |
| EPS (sen) | 6.0 | 7.4 | 8.6 | 9.2 | 9.7 |
| Core EPS (sen) | 6.5 | 7.5 | 8.6 | 9.2 | 9.7 |
| Core EPS growth (%) | 34.4 | 16.7 | 14.2 | 7.0 | 5.3 |
| Core P/E (x) | 23.4 | 20.0 | 17.5 | 16.4 | 15.5 |
| DPS (Sen) | 2.5 | 3.0 | 3.0 | 3.0 | 3.0 |
| Dividend yield (%) | 1.7 | 2.0 | 2.0 | 2.0 | 2.0 |
| ROE (%) | 4.4 | 5.0 | 5.5 | 5.7 | 5.7 |
Table 2: Results Analysis (RM mn)
| YE 31 Dec (RM’mn) | 2Q24 | 1Q25 | 2Q25 | QoQ (%) | YoY (%) | 1H25 | 1H25 | YoY (%) |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1203.2 | 871.6 | 1062.3 | 21.9 | (11.7) | 2,181.9 | 1,933.9 | (11.4) |
| Gross Profit | 432.3 | 283.3 | 361.3 | 27.5 | (16.4) | 735.9 | 644.7 | (12.4) |
| EBIT | 335.6 | 189.1 | 245.7 | 29.9 | (26.8) | 532.2 | 434.8 | (18.3) |
| EBIT ex Els | 332.2 | 186.3 | 244.6 | 31.3 | (26.4) | 531.0 | 430.9 | (18.8) |
| Associates & JVs | (86.6) | (21.5) | (34.5) | 60.4 | (60.2) | (110.0) | (56.0) | (49.1) |
| Net Int Inc/(exp) | 12.1 | 11.8 | (39.4) | (432.9) | (425.6) | 20.1 | (27.6) | (237.0) |
| EI | 3.5 | 2.8 | 1.0 | (63.3) | (69.9) | 1.2 | 3.9 | 210.6 |
| PBT | 265.5 | 178.6 | 218.8 | 22.5 | (17.6) | 446.3 | 397.4 | (11.0) |
| PBT ex Els | 262.1 | 175.8 | 217.7 | 23.9 | (16.9) | 445.1 | 393.5 | (11.6) |
| Taxation | (99.8) | (57.4) | (71.3) | 24.0 | (28.6) | (153.3) | (128.7) | (16.0) |
| Minority Interest | (3.8) | (3.7) | (4.0) | 6.2 | 5.5 | (7.5) | (7.7) | 2.6 |
| Net profit | 162.0 | 118.4 | 143.5 | 21.2 | (11.4) | 285.5 | 262.0 | (8.3) |
| Normalised net profit | 158.5 | 115.6 | 142.5 | 23.3 | (10.1) | 284.3 | 258.1 | (9.2) |
| Adj EPS (sen) | 2.3 | 1.7 | 2.1 | 23.3 | (10.1) | 4.2 | 3.8 | (9.2) |
| GDPS (sen) | 1.5 | 0.0 | 1.5 | nm | 0.0 | 1.5 | 1.5 | 0.0 |
| ppt | ppt | ppt | ||||||
| Adj EBIT Margin (%) | 27.6 | 21.4 | 23.0 | 1.7 | (4.6) | 24.3 | 22.3 | (2.1) |
| Adj Pretax Margin (%) | 21.8 | 20.2 | 20.5 | 0.3 | (1.3) | 20.4 | 20.3 | (0.1) |
| Adj Net Margin (%) | 13.2 | 13.3 | 13.4 | 0.2 | 0.2 | 13.0 | 13.3 | 0.3 |
| Eff. Tax Rate (%) | 37.6 | 32.2 | 32.6 | 0.4 | (5.0) | 34.3 | 32.4 | (2.0) |
Sector Recommendation Guideline
OVERWEIGHT: The total return of the sector, as per our coverage universe, exceeds 12%.
NEUTRAL: The total return of the sector, as per our coverage universe, is within the range of 7% to 12%.
UNDERWEIGHT: The total return of the sector, as per our coverage universe, is lower than 7%.
Stock Recommendation Guideline
BUY : Total return of the stock exceeds 12%.
HOLD : Total return of the stock is within the range of 7% to 12%.
SELL : Total return of the stock is lower than 7%.
Not Rated: The company is not under coverage. The report is for information only.
Total Return of the stock includes expected share price appreciation, adjustment for ESG rating and gross dividend. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting.
Total Return of the sector is market capitalisation weighted average of total return of the stocks in the sector.
ESG Scoring & Guideline
| Scoring | Environmental | Social | Governance | Average |
|---|---|---|---|---|
| Remark | The group is committed to high levels of sustainability with its properties. Since 2019, it became rated under the Carbon Disclosure Project, a Global Carbon and Environmental Benchmark Rating body. | The group strives to empower cities and communities by building resilience and enhancing lives through education & healthcare; enhancing practices in the workplace. | 64% of its board members are independent, and 36% are female, meeting the Malaysian Code of Corporate Governance’s prescribed practice. It holds investor briefings regularly, demonstrating good transparency and disclosure practices. | |
| (≥80%) | : Displayed market leading capabilities in integrating ESG factors in all aspects of operations, management and future directions. | +5% premium to target price | ||
| (60-79%) | : Above adequate integration of ESG factors into most aspects of operations, management and future directions. | +3% premium to target price | ||
| (40-59%) | : Adequate integration of ESG factors into operations, management and future directions. | No changes to target price | ||
| (20-39%) | : Have some integration of ESG factors in operations and management but are insufficient. | -3% discount to target price | ||
| (<20%) | : Minimal or no integration of ESG factors in operations and management. | -5% discount to target price | ||
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
As of Friday, August 22, 2025, the analyst, Thiam Chiann Wen, who prepared this report, has interest in the following securities covered in this report:
(a) nil
Kaladher Govindan – Head of Research
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