KUALA LUMPUR: Sime Darby Property Bhd (SimeProp) is expected to achieve its conservative financial year 2022 (FY22) sales target of RM2.6bil – despite a potential rate hike in the second half of 2022, the absence of the Home Ownership Campaign and persistent overhangs.

       In a note yesterday, Hong Leong Investment Bank Bhd (HLIB) Research said the projection is underpinned by the property developer’s unbilled sales of RM2.4bil, proposed RM2.8bil gross development value launches for FY22, as well as the re-opening of Malaysia’s borders tomorrow.

       It noted that last Friday, SimeProp’s share price tumbled 25.8% to 59 sen from a 52-week high of 79.5 sen – a 70% discount to HLIB’s revalued net asset value 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 SimeProp 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. — Bernama