SP Setia Q2 net profit higher at RM491.2m

An artist’s impression of the Careya terraced houses, the first of SP Setia Bhd’s Starter Homes series. — Picture courtesy of SP Setia
An artist’s impression of the Careya terraced houses, the first of SP Setia Bhd’s Starter Homes series. — Picture courtesy of SP Setia

, Aug 23 — SP Setia Bhd’s net profit for the second quarter ended June 30, 2018, soared to RM491.2 million compared with RM234.4 million recorded in the same quarter last year.

Revenue for the quarter increased 15 per cent to RM925.9 million from RM866.35 million in the previous corresponding quarter, mainly contributed by sales of completed properties such as Setia Alam, Setia Eco Park and Temasya Glenmarie in Shah Alam, as well as Setia EcoHill and Setia EcoHill 2 in Semenyih.

“During the quarter, there was a RM343.8 million one-off provisional fair-value gain arising from the re-measurement of an existing equity stake in Setia Federal Hill Sdn Bhd, which was previously a joint-venture and now a wholly-owned subsidiary of the group,” it said in a filing with Bursa today.

For the first half of 2018 (H1 FY18), SP Setia had secured sales of RM2.11 billion and is optimistic of achieving its 2018 of RM5 billion.

“Local projects contributed RM1.41 billion, which represented two-thirds of sales, with the remaining RM705.3 million coming from international projects,” said the .

On the local front, the sales secured largely originated from the central region at RM880.1 million, whereas the southern and northern regions contributed combined sales of RM525.7 million.

As for international projects, the Australian market continued to lead and achieved strong sales of RM668.1 million, with contributions largely from the UNO Melbourne project.

In separate statement, President and Chief Executive Officer Datuk Khor Chap Jen said the group performed reasonably well in H1 FY18 given the current lacklustre environment.

“This is a testament to the strategies we adopted and the resilience of Team Setia in ensuring they work towards achieving the RM5 billion sales target this year.

“We are pleased to note that the ongoing integration of I&P Group landbank and projects are making good progress, especially on landbank where importance is placed on value enhancements for both the townships and mixed-use developments,” he said.

Khor added that the group’s prospects are positive, underpinned by an unbilled sales pipeline of RM8.12 billion, 46 ongoing projects and effective remaining landbank of 3,879.7 hectares with a gross development value of RM155.94 billion as at June 30, 2018. — Bernama

Source: The Malay Mail Online

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