Muristek
A general view of the Sime Darby Property headquarters in Petaling Jaya. — Reuters pic
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KUALA LUMPUR, March 30 ― Sime Darby Property Bhd is expected to achieve its conservative financial year 2022 (FY2022) sales target of RM2.6 billion ― despite a potential rate hike in the second half of 2022, the absence of the Home Ownership Campaign and persistent overhangs.
In a note today, Hong Leong Investment Bank Bhd (HLIB) said the projection is underpinned by the property developer’s unbilled sales of RM2.4 billion, proposed RM2.8 billion gross development value launches for FY2022, as well as the re-opening of Malaysia’s borders on April 1.
It noted that last Friday, Sime Darby Property’s share price tumbled 25.8 per cent to 59 sen from a 52-week high of 79.5 sen ― a 70 per cent discount to HLIB’s revalued net asset value (RNAV) per share of RM1.95.
“We believe such a steep discount is unjustified, given that the group is the largest property developer in Malaysia in terms of land bank size at an astonishing 8,093.71 hectares,” it said.
Overall, the research house believes that Sime Darby Property would be able to navigate the current challenging property landscape, noting that the bulk of the group’s land bank was acquired at a low historical cost which should provide product and pricing flexibilities.
At 10.43am, Sime Darby Property’s shares were flat at 58 sen, with 8.73 million units transacted. ― Bernama