Sime Darby Property "Sanguine outlook despite a slow start" (Buy) Lee

研报英文原文证据摘录

Sime Darby Property "Sanguine outlook despite a slow start" (Buy) Lee

/25E 0.09 0.09

1Q26's revenue/gross profit were down -8.3%/-6.8% YoY respectively. Slower 12/26E 0.10 0.09

construction progress for the property development segment was a key driver of the 12/27E 0.11 0.10

results miss. Seasonal festivities were said to be one of the reasons for slower progressive

recognitions in the quarter, though we note that unbilled sales continue to increase 5% Terence Lee, CFA

AnalystQoQ to RM4.1bn, supporting future revenue recognitions. Income recognition from the

terence.lee@ubs.com

first phase of Google's data centre that has completed should also see income +65-6495 3570

contributions commencing as of 1 April 2026.

Michael Lim

AnalystQ: Has the company's outlook changed?

michael-h.lim@ubs.com

SDP makes no changes to its guidance for its RM4.7bn launch plans, RM4.0bn sales +65-6495 5902

target and ~25% gross profit margin. Though, the company is set for a midyear strategy

review come Jul'26, with changes likely dependent on the evolving cost inflation

situation. Thus far, RM918m of property sales were achieved in the first quarter, forming

23% of its full year RM4.0bn target, with the bulk (53%) comprising industrial property

sales. SDP had deferred some launches from 1Q, into 2-3Q, likely reflecting the

heightened uncertainty in lieu of geopolitical tensions when they first arose. Elsewhere,

management continues to expect losses at Battersea, but notes that Phase 3C remains in

"positive margins" territory, whilst factoring higher construction costs.

Valuation: Buy rated with price target of RM1.74

We value Sime Darby Property at a forward PE multiple of 18x on 2027E core EPS.

Highlights (RMm) 12/22 12/23 12/24 12/25E 12/26E 12/27E 12/28E 12/29E