SP Setia FY18 net profit falls to RM670.95 million

KUALA LUMPUR: Malaysia’s leading property developer, SP Setia Bhd chalked up a lower net profit of RM670.95 million for the financial year ended Dec 31, 2018 (FY18) from RM993.70 million posted a year ago.

Revenue decreased to RM3.59 billion from RM4.28 billion previously due to lower revenue from the group’s property development, construction and other operations.

However, the group said it achieved sales of RM5.12 billion which surpassed the target of RM5.0 billion, with 80 per cent of the turnover coming from local projects and the remaining 20 per cent from international contracts.

“On the local front, sales secured were largely from the central region with RM3.11 billion followed by the southern region (RM805.1 million) and the northern and eastern regions combined (RM206.6 million)

“As for international projects, UNO Melbourne continued to outperform with sales of RM653.6 million while Sapphire by the Gardens added on another RM65.5 million of sales,” it said.

SP Setia president and chief executive officer Datuk Khor Chap Jen said the sales achievement demonstrated the resilience and versatility of the company’s team in navigating the various headwinds in a subdued property market.

“With the range of products offerings that the group plans to launch, SP Setia has set a sales target of RM5.65 billion for FY19, of which approximately 89 per cent is expected to be derived from local projects.

“This represents a sales growth of about 10 per cent and will further solidify S P Setia’s position as the leading property developer,” he added.

As at Dec 31, 2018, the group had unbilled sales of RM12.32 billion, 45 ongoing projects and remaining land bank of 3,850 hectares with a gross development value of RM149.70 billion. — Bernama