sales target

 
 

Higher costs eat into SP Setia’s Q2 earnings, FY19 sales target slashed to RM4.55b

PETALING JAYA: SP Setia Bhd’s net profit for the second quarter ended June 30, 2019 tumbled 68.7% to RM138.73 million from RM442.74 million a year ago, mainly due to higher cost of sales and taxation.

Amid an uncertain macro-economic situation and prolong subdued property market, the group has revised the sales target for FY2019 from RM5.65 billion to RM4.55 billion, which is aligned to the present market conditions, according to its president & CEO Datuk Khor Chap Jen (pix).

Its revenue, however, jumped 44.3% to RM1.34 billion compared with RM925.97 million.

For the Islamic redeemable convertible preference shares, SP Setia has declared an interim dividend for the six-month period from January 1, 2019 to June 30, 2019 of 6.49% and 5.93% per annum respectively.

For the six-month period, the group’s net profit sank 62% to RM191.55 million from RM504.23 million while revenue went up 39.2% to RM2.20 billion versus RM1.58 billion a year ago.

The revenue and pretax profit achieved thus far were largely contributed by ongoing projects in Malaysia while on-going international projects of Battersea Power Station in London, UK as well as Sapphire by the Gardens and UNO in Melbourne, Australia were recognised on completion method, hence there was no profit contribution from the said international projects in the first half of FY2019.

Over the same period, the group secured sales of RM1.98 billion. Local projects contributed RM1.71 billion, which represented 87% of the total sales, while international projects contributed RM262.6 million, which represented the remaining 13% of the total sales.

For the first half of FY2019, properties worth RM1.55 billion in gross development value (GDV) were launched.

“The group continues to monitor the property market closely and has revised the total planned launches to RM3.33 billion for the second half of FY2019” said Khor.

The planned launches will focus in Klang Valley with RM2.32 billion and Johor with RM776 million worth of launches.

Given the versatility of the planned launches in the pipeline as well as the extension of Home Ownership Campaign, SP Setia is confident of achieving the revised sales target of RM4.55 billion.

“Anchored by 46 ongoing projects with 9,381 acres of effective land banks remaining and potential GDV of RM144.52 billion, prospects going forward remain positive with total unbilled sales of RM10.67 billion as at June 30, 2019.”


PKNS eyes RM60m sales at property expo

KUALA LUMPUR, July 27 — The Selangor State Corporation (PKNS) is targeting RM60 million in sales from the 10-day PKNS Property Exhibition Series 2/2019 from July 26 to August 4. In a statement today, PKNS said the exhibition, in conjunction with…


Perodua ramps up production volume to shorten delivery time

KUALA LUMPUR: Perodua, which has revised upward its sales target by 4,000 units this year, aims to increase its production volume to 249,000 units this year in a bid to address the delivery time issue.

Speaking at a media conference on its first-half performance review today, its president and CEO Datuk Zainal Abidin Ahmad said the increase in production will improve its stock levels to 0.5%, based on its monthly production level, from the current 0.1%.

This will effectively reduce the waiting time to less than a month for its customers.

“At the moment, there is a two-month waiting period for our vehicles and this is due to our stock levels being very low, but the production volume increase will address this issue… hopefully, next year we’ll have the right footing with a good level of inventory so that we do not have the same problem with this year.”

The 249,000 production target represents a 12.9% increase from the 220,600 units produced in 2018. Currently, its monthly production ranges between 18,000 and 20,000 units.

At present, both of its production facilities are running at full capacity of 97%.

On sales, Perodua sold 121,800 units in the first half of the year, a 4% increase from 117,100 units recorded in the same period last year.

Following that, it has set a higher sales target of 235,000 units from its previous estimate of 231,000 units.

In 2018, Perodua sold 227,243 vehicles, the highest annual sales achievement in its history.

As for its export market, Perodua has a target of 3,270 units for 2019, of which 2,170 units from the Indonesian market.

Last year, it exported 2,184 units, significantly lower than the 9,000 units achieved in 2012.

Zainal explained that Perodua needs to fulfil domestic market requirements before exporting overseas and it also depends on whether the group could achieve cost competitiveness.

With regard to capital expenditure, Perodua has spent RM102.2 million in the first half of 2019, out of the RM667.6 million allocated for the year.

Zainal said the bulk of it will be utilised towards expanding its test track in its research and development facilities to ensure that Perodua is ready to meet any new regulatory development that will be introduced in the future.

For 2019, Perodua estimates that it will have a market share of 40%.


Perodua revises upward sales target after 4% growth in first half

KUALA LUMPUR: Perodua has revised its sales target upwards by 4,000 units to 235,000 units from 231,000 unit earlier.

This comes after it sold 121,800 units in the first half of the year, a 4% increase from 117,100 units recorded in the same period last year.

Last year, the group sold 227,243 vehicles, the highest annual sales achievement in its history.

Speaking at a press conference today in conjunction with the first-half performance review, Perodua president and CEO Datuk Zainal Abidin Ahmad said both of its plants are running at full capacity of 97%.


Perodua revises upward 2019 sales target to 235,000 units

KUALA LUMPUR, July 17 — Perusahaan Otomobil Kedua Sdn Bhd (Perodua) has revised upwards its sales target for the year to 235,000 units from 231,000 units set earlier in January, said the president and chief executive officer Datuk Zainal Abidin…


Paramount shareholders approve stake sale in tertiary education business

KUALA LUMPUR: Paramount Corp Bhd received approval from the shareholders to divest its stake in tertiary education business for RM420 million.

The selling prices for KDU Penang University College Campus in GeorgeTown and Batu Kawan as well as Utropolis Glenmarie Campus in Shah Alam are RM50 million, RM120 million and RM250 million, respectively.

Speaking at a press conference after its EGM today, Paramount CEO Jeffrey Chew Sun Teong said the move will reduce its exposure in the education segment via tie-ups with strategic partners and unlock more value outside of Malaysia.

Following the divestment, the revenue contribution from its property and education is expected to shift to 80:20 in five years from the current 70:30.

Meanwhile, Paramount CEO Jeffrey Chew Sun Teong is confident that the group could hit its projected sales target of RM1 billion this year despite the softening market conditions.

“We believe that we could achieve the target by the end of the year,“ he said.

The group has pushed back a number of its property launches to the second half of the year.


Paramount shareholders approve stake sale in tertiary education business

KUALA LUMPUR: Paramount Corp Bhd received approval from the shareholders to divest its stake in tertiary education business for RM420 million.

The selling prices for KDU Penang University College Campus in GeorgeTown and Batu Kawan as well as Utropolis Glenmarie Campus in Shah Alam are RM50 million, RM120 million and RM250 million, respectively.

Speaking at a press conference after its EGM today, Paramount CEO Jeffrey Chew Sun Teong said the move will reduce its exposure in the education segment via tie-ups with strategic partners and unlock more value outside of Malaysia.

Following the divestment, the revenue contribution from its property and education is expected to shift to 80:20 in five years from the current 70:30.

Meanwhile, Paramount CEO Jeffrey Chew Sun Teong is confident that the group could hit its projected sales target of RM1 billion this year despite the softening market conditions.

“We believe that we could achieve the target by the end of the year,“ he said.

The group has pushed back a number of its property launches to the second half of the year.


LBS Bina confident of RM1.5b sales by year-end

PETALING JAYA, June 28 — LBS Bina Bhd expects to achieve its RM1.5 billion sales target by year-end, supported by projects to be launched this year including an affordable housing project, says group managing director Tan Sri Lim Hock San. He said…


Eco World International’s net loss narrows in Q2

PETALING JAYA: Eco World International Bhd’s (EWI) net loss for the second quarter ended April 30, 2019 narrowed to RM11.98 million from RM26.46 million a year ago, due to recognition of revenue and profit by its joint venture projects in the UK following completion and commencement of handover of units sold to customers, and lower unrealised foreign exchange loss, partly offset by higher finance cost.

For the six-month period, the group recorded a net profit of RM10.78 million compared with a net loss of RM36.63 million a year ago.

It also saw an unrealised gain on foreign exchange of RM70,000 during the period, compared with an unrealised loss on foreign exchange of RM2 million a year ago.

EWI recorded RM586 million sales in the first seven months of the financial year ending Oct 31, 2019 (FY19), driven by its strategy to expand into the mid-mainstream market in London with products averaging from GBP500 psf to GBP800 psf as projects developed for this market segment contributed more than 50% of the sales achieved.

“The better performance clearly indicates that certain pockets of demand for properties in London and Australia remain resilient, even if overall homebuyers’ sentiment in these markets is weak amidst Brexit and economic uncertainties,” it said.

Moving forward, EcoWorld London is actively pursuing new build-to-rent (BTR) opportunities to tap into the growing institutional demand for purpose-built BTR projects in the UK and aims to finalise the terms for a sizeable deal before year-end.

EWI expects this potential deal to contribute significantly towards the achievement of its two-year sales target of RM6 billion set for FY19 and FY20.

At the midday break, the stock was down 0.7% to 68 sen with 56,000 shares changing hands.


FGV posts net loss of RM3.37m in Q1

KUALA LUMPUR, May 29 — FGV Holdings Bhd (FGV) registered a net loss of RM3.37 million in the first quarter ended March 31, 2019 (Q1 2019) compared with a net profit of RM1.12 million a year ago. Revenue declined by 9 per cent year-on-year (y-o-y)…