Sinarmas Land has reported earnings of $60.1 million in the 2HFY2021 ended December, 41.7% lower than earnings of $103.0 million in the same period the year before.
Its earnings for the FY2021, however, surged 44.7% y-o-y to $145.7 million from FY2020’s earnings of $100.7 million.
Earnings per share (EPS) for the 2HFY2021 stood at 1.41 cents and 3.42 cents respectively.
2HFY2021 revenue fell 14.0% y-o-y to $535.7 million, while FY2021 revenue dipped 1.7% y-o-y to $895.0 million. The lower FY2021 revenue was mainly due to the lower sales of industrial land in Kota Deltama on the back of the ongoing Covid-19 pandemic. The decrease was partly offset by higher revenue recognition for residential units and apartments in Indonesia.
Gross profit for the 2HFY2021 fell 21.4% y-o-y to $307.1 million. During the FY2021, gross profit fell 4.9% y-o-y to $545.0 million.
In the FY2021, Sinarmas Land reported share of profit in associated companies of $17.4 million in FY2021 as compared to share of loss of $48.8 million in the previous year. This was mainly attributable to recognition of profit from sales of development properties in an associated company in China as well as the absence of share of fair value loss in an associated company in Indonesia.
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The group recorded a higher share of profit in joint ventures of $15.4 million in the FY2021 in line with the recognition of revenue from the completed residential and commercial units in a joint venture in Indonesia.
As at end-December, cash and cash equivalents stood at $1.22 billion.
A first and final dividend of 0.09 cent per share has been declared for the period, same as last year. The dividend will be payable on June 23.
“As the world economies began to turnaround, Indonesia recorded a 3.69% growth in 2021, pulling out of the economic contraction on the back of strong exports and increased domestic consumption from the gradual relaxation of Covid-19 curbs,” says Margaretha Widjaja, Sinarmas Land’s executive director and vice-chairman of the group’s Indonesia Division.
However, she warns that the road to recovery in 2022 “will be shadowed by inflation-led rate hikes, global supply chain disruptions, the ongoing Russia-Ukraine war and threats of new Covid-19 variants”.
“Hence, we are cautious about business recovery in 2022 although our Indonesian listed subsidiaries chalked a resilient performance this year,” she adds.
In her statement, Widjaja reveals PT Bumi Serpong Damai Tbk (BSDE) achieved 110% of its 2021 marketing sales target to hit IDR7.7 trillion ($726.1 million), up 19% y-o-y. PT Puradelta Lestari Tbk (DMAS) achieved 88% of its 2021 marketing sales target of IDR2 trillion, mainly from industrial land sales.
“For 2022, BSDE has set a marketing sales target of IDR7.7 trillion and launched the ‘Double Dream’ marketing promotion, offering attractive incentives on ready-to-move-in properties and under-construction developments, while DMAS has set a target of IDR1.8 trillion as it received enquiries for approximately 70 hectares of industrial land since the beginning of this year,” she says.
Looking ahead, Widjaja says the group “will continue to seek out new property investments and partnerships to expand our global footprint in 2022”.
“Additionally, the group, through its wholly-owned subsidiary, [has] incorporated SML INVITE Fund Management VCC, a variable capital company (VCC) to explore further investment opportunities in digital and technology-related funds,” she adds.
Shares in Sinarmas Land closed at 21.5 cents on Feb 28.
Photo: Sinarmas Land
