S P Setia confident of achieving target

Group on track to hitting RM4bil sales in FY22

“The group’s local projects’ progress is envisaged to improve by the fourth quarter of this year despite the recent acute labour shortage faced by the real estate industry.” Datuk Choong Kai Wai

PETALING JAYA: S P Setia Bhd is confident of hitting its sales target for the financial year of 2022 (FY22) after it secured total sales of Rm2.7bil in the first nine months of FY22.

The property development giant said sales were mainly from local projects, which contributed Rm2.34bil or approximately 87%.

Meanwhile, international projects contributed another Rm359mil or approximately 13% of sales.

On the local front, the main contribution came from the central region with Rm1.68bil, aided by Rm465mil from the southern region, while the northern region contributed Rm201mil.

S P Setia president and chief executive officer Datuk Choong Kai Wai said the group’s efforts in clearing completed inventories have paid off, whereby Rm478mil of property units were sold.

“Meanwhile, Rm592mil of bookings were secured as at Sept 30. We are optimistic that we will hit our sales target for this year.

“The group’s local projects’ progress is envisaged to improve by the fourth quarter of this year despite the recent acute labour shortage faced by the real estate industry.

“Our developments in Australia are progressing well, whereby Sapphire by the Gardens was delivered to homebuyers last month, while UNO Melbourne is slated for partial completion by this year’s end.

“Hence, we expect revenue from Australia to contribute significantly to our final quarter of FY22,” Choong said in a statement.

Amid such developments, S P Setia posted a profit before tax of Rm370mil in the first nine months of FY22 against a revenue of Rm2.75bil.

The group also noted that it has launched several products that match buyers’ affordability level. It said the projects have received good response in several major townships, such as Bandar Kinrara and Setia Alamsari in Selangor and Setia Tropika in Johor.

In Setia Alamsari, the much-anticipated cluster homes and shop offices priced from RM788,000 to Rm1.57mil, respectively, achieved 85% and 80% booking rates.

In Setia Tropika, the launch of semi-detached homes – priced from Rm1.36mil – also saw encouraging response.

S P Setia is also embarking on new areas of growth such as industrial parks or properties where there is solid demand prevalent in the market.

Two tracts of landbank in Setia Alaman, Klang and Taman Industri Jaya, Johor have been identified for this industrial space.

On the international front, S P Setia is also gaining a stronger foothold in Vietnam

“Despite the current economic challenges, we believe people are still on the lookout for well-built homes in well-planned communities.

“With such offerings from S P Setia, we believe the group will achieve our sales target of Rm4bil set for this financial year.

“Backed by unbilled sales totalling Rm8.4bil in place, this will provide earnings visibility to the group for the short-to-mid-term,” Choong added.

S P Setia is currently anchored by 47 on-going projects and an effective remaining land bank of 6,687 acres with a gross development value of Rm119.47bil as at Sept 30.