Beat expectations
Profit and sales above expectations
SDPR’s 4Q21 net profit of MYR72m (+1.9x YoY, +5.6x QoQ) was above expectations. 2021 sales of MYR2.95b were also above management/our FY21 sales target/assumption by 23%/9%. Management however sets lower sales goal of MYR2.6b for 2022 in the absence of HOC. We adjust our FY22/23 earnings forecasts by -0.4%/+28%. Our TP remains unchanged at MYR0.69 TP (on 0.5x FY22 PBV). Maintain HOLD.
Results above expectations
SDPR’s 4Q21 net profit of MYR72.2m (+1.9x YoY, +5.6x QoQ), brings 2021 net profit to MYR136.9m (+1.7x YoY), accounting for 118%/106% of MKE/consensus estimates. We attribute the stronger-than-expected 4Q21 earnings performance to the stronger-than-expected progress billings post lock-down and higher-than-expected sales in 4Q21 (+53% QoQ; average take up rate was 87%). SDPR’s net gearing remained unchanged at 0.31x in end 4Q21.
Sets MYR2.6b sales target for 2022
2021 locked-in property sales of MYR2.95b were 25% above its initial FY21 sales target. Of the MYR2.95b sales, 44% was derived from landed properties, followed by industrial (18%) and high-rise (25%). In the absence of Home Ownership Campaign (HOC), management has set a lower sales target of MYR2.6b (-12% YoY) for 2022 driven by MYR2.8b worth of new launches (59% landed, 16% industrial and 22% high-rise). As at Feb 2022, it has total bookings worth MYR2.1b.
Earnings adjustments
We adjust our FY22/23 earnings forecasts by -0.4%/+28% to factor in 2022 sales assumption of MYR2.6b. SDPR’s unbilled sales stood at MYR2.4b as at end Dec 2021 (0.8x our FY22E revenue; 74% from township projects). Post earnings adjustments, our RNAV is intact at MYR1.97 (+4sen). SDPR currently trades at 0.5x/0.3x PBV/PRNAV.