Sime Darby Property's growth prospects remain strong, supported by its RM3.6 billion sales target, RHB Investment Bank Bhd (RHB Research) said.
The firm said about RM4 billion worth of SD Property's projects will enter the market this year.
Of these, projects valued at RM1.75 billion will be launched in the first half of this year.
"Pipeline products to be launched are rather balanced, in our view – comprising residential landed (28 per cent), residential high-rise (27 per cent), industrial (31 per cent) and commercial (14 per cent) segments.
"The percentage of high-rise projects will be lower year-on-year that is made up 38 per cent of total launches last year, while commercial products will account for a higher portion of its total launches this year," the firm said.
As most of the launches are predominantly new phases in existing townships and projects such as Bandar Bukit Raja, the Elmina township and business park and Serenia City, RHB Research said the demand momentum should continue.
The firm added that the developer's SHIFT25 strategy will expand its investment property portfolio.
It stated that recurring income-generating assets contributed about 10 per cent of total earnings last year.
The development of two data centres (DCs) also still intact, while first and second phases are slated for completion in second half of 2026 and 2027.
However, the company's involvement is limited to providing powered shell and core and its clients are US-based hyperscalers, who is less vulnerable to changes in restrictions.
"In the meantime, its negotiations with other DC players are still ongoing despite the AI chip restriction by the US," the firm added.
RHB Research kept its "buy" call on SD Property with a target price of RM2.33 a share.
