SP Setia’s Q2 net profit 7pc higher to RM80.09m

Thursday, 18 Aug 2022 4:49 PM MYT

KUALA LUMPUR, Aug 18 — SP Setia’s net profit increased to RM80.09 million for the second quarter ended June 30, 2022 (Q2) versus RM74.81 million a year earlier.

The group, however, recorded lower revenue of RM1.02 billion versus RM1.08 billion previously, mainly due to less contribution from land sales and completed inventories.

“For the quarter under review, the group launched landed properties comprising double-storey terraces, semi-detached and bungalow units with a total gross development value (GDV) of RM300.7 million.

“The take-up rate in Setia Eco Templer’s new phase hovers above 90 per cent while the take-up rate in Setia Eco Glades township is also encouraging. The group is also rescheduling selected planned launches,” a filing with Bursa Malaysia said.

The group anticipates stronger sales in the second half of the financial year 2022 (FY2022) and is on track to achieve its sales target of RM4.0 billion.

“Backed by unbilled sales totalling RM8.71 billion as at June 30, 2022, this will provide earnings visibility in the short to mid-term.

“Despite the current challenges disrupting the world economy, the group will continue to monitor the situation to attain its overall performance,” it said.

The group is currently anchored by 47 ongoing projects and a remaining landbank of 7,042 acres. The group’s GVD stands at RM120.88 billion as at June 30, 2022.

Meanwhile, a company statement said it has secured RM1.67 billion in total sales for the six months ended June 30, 2022, with local projects contributing RM1.38 billion, or 83 per cent of total sales, while the remaining RM294.0 million came from international sales.

Net profit stands at RM147.59 million on the back of RM1.89 billion in revenue for its first half financial year ended Dec 31, 2022, against RM150.04 million and RM2.14 billion, respectively, a year ago.

The company said it sold RM272.0 million of completed inventories, and secured bookings worth RM559.0 million which it will focus on converting into sales, SP Setia president and chief executive officer Datuk Choong Kai Wai said. — Bernama