Sime Darby Property: A Strong Quarter (SDPR MK, Outperform, TP: RM1.55)

Sime Darby Property’s (SDPR) 2QFY26 headline net profit more than doubled YoY to RM322.0m (+124.4% YoY, +102.8% QoQ) primarily driven by fair value gains of RM55m (from the build-to-lease data centre in Elmina Business Park and semi-detached factories The Cubiz Collection in the City of Elmina) and higher-than-expected billings from on-going projects.

Stripping out one-off items, we estimate that the Group’s 1HFY26 net profit came in at RM396.6m, which beat both consensus expectations at 72% and 68% of respective estimates. Separately the Group has secured RM1.8bn pre-sales in 1HFY26, or about 45% of its FY26 sales target of RM4bn.

Sime Darby Property

“We understand that it has about RM1.0bn in bookings (as at 9 Aug 2026) and unbilled sales remained steady at RM3.8bn (from RM4.1bn a quarter ago), ensuring earnings visibility for the next 3-4 years. All told, we revise our FY26-28F upwards by average of 16% due to the change of billing assumptions and fair value gains,” says PIB.

PIB maintain Outperform call, with TP unchanged at RM1.55, valuing the stock at near-parity to its book value, given its strong sales momentum and improving earnings quality. 

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