Revenue, however, improved 12% to RM688.91 million, fuelled by the progress of its ongoing projects, against RM615.61 million previously.
For the six months ended June 30 (H1 FY2023), SDP’s revenue increased 25% to RM1.37 billion from RM1.09 billion in the same period a year ago. Net profit, however, dropped 16% to RM131.7 million from RM156.6 million a year earlier.
The group recorded sales totalling RM1.5 billion in H1 FY2023, which represented 65% of its RM2.3 billion sales target for FY2023.
SDP said the industrial segment was the key contributor, with 40% or RM597 million of total sales achieved in H1 FY2023.
“In the face of current market dynamics, our strategy is rooted in understanding market nuances and consumer demand.
“This has allowed us to pivot effectively and capitalise on areas of growth while maintaining consistency in our offerings. This balance has been crucial for our continued sales and operational growth trajectory in H1 FY2023,” said group managing director Azmir Merican.
During H1 FY2023, the group unveiled new projects valued at RM2.1 billion, representing 70% of its full-year target of RM3 billion.
The offerings were diversified to meet market needs – 49% in residential landed properties, 30% in residential high-rise, 18% in industrial and 3% in commercial.
“The overall take-up rate of all products currently stood at 82%,” it said.
SDP residential landed products recorded an average take-up rate of 80% as at Aug 2.
“As at June 30, the group posted higher unbilled sales of RM3.8 billion, versus RM3.6 billion as at Dec 31, 2022, ensuring revenue visibility for the next three years.
“Current bookings stood at RM1.9 billion as at Aug 6, 2023,” it added.
SDP declared its first interim dividend of one sen dividend per share for FY2023 amounting to a payout of RM68 million.
Confident that the strong momentum seen in the first half of 2023 will continue into the second half of the year, the group has revised its sales target of RM2.3 billion to RM2.7 billion, and the gross development value (GDV) launch target of RM3 billion to RM4 billion.
“Given the positive outlook, we believe that we are well-positioned to capitalise on the resilient market demand, which also presents us with an opportunity to maximise our property development growth over the coming years.
“We are optimistic in our ability to achieve our goals for the year and subsequently strive towards maximising shareholders’ value,” Azmir added.
At market close today, the group’s share price was up by 4.5 sen or 6.98% at 69 sen, giving it a market capitalisation of RM4.66 billion.