SP Setia brings forward mid-priced launches to tide it over

PETALING JAYA: SP Setia Bhd, which is delaying its apartment launches and bringing forward launches of more midpriced land properties and retail shop lots in a nod to the challenging environment ahead, reported a net profit of RM134.07 million for three months ended Sept 30, 2016.

The results were driven by its ongoing property projects. Revenue for the quarter under review came in at RM1.26 billion.

In a filing with Bursa Malaysia, the property developer said it achieved RM2.4 billion in sales for 10 months ended Oct 31, reflecting an increased demand for the group’s projects in the second half of FY16.

The third quarter alone contributed RM943 million of sales, the group’s strongest quarter for FY16.

SP Setia said the sales are mainly in line with expectation and it foresees a continuing trend for the remaining months of 2016.

The group said it remains resilient with its diversified range of new launches, ranging from affordable to up market and landed properties to condominiums.

SP Setia believes the group’s prospects going forward remain positive with total unbilled sales of RM8.39 billion, anchored by 31 ongoing projects and an effective remaining land bank of 3,595 acres with a gross development value of RM70.65 billion as of Sept 30, 2016.

Its nine-month net profit stood at RM383.24 million with RM3.19 billion in revenue.

In 2015, SP Setia changed its financial year end from Oct 31 to Dec 31, hence the 2015 quarterly results have not been included as comparative figures.