S P Setia records sales of RM2.56bil in 1H23

KUALA LUMPUR: S P Setia Bhd said it registered total sales of RM2.56bil in the first half of 2023 with local projects contributing RM2.19bil or 86% of the sales.

In a statement, the group said the central region was the biggest contributor to the sales with RM1.49bil, while the southern and northern region contributed RM589mil and RM74mil respectively. Meanwhile, international sales largely made up the remaining sales.

As at June 30, 2023, S P Setia secured total bookings of RM470mil.

“The strong performance of S P Setia in the first half of 2023 demonstrates our ongoing commitment to delivering high-quality developments and solutions.

“We are pleased with these positive results, which reflect the strong demand for our projects, both locally and internationally,” said S P Setia president and CEO Datuk Choong Kai Wai.

According to Choong, the group’s earnings visibility in the short- to medium-term is robust with 44 ongoing projects and unbilled sales of RM6.82bil as at June 30, 2023.

“Despite the global challenges posed by persistent inflation and higher interest rates, the group remains optimistic about achieving a noteworthy performance for the financial year 2023,” he said.

In the second quarter ended June 30, 2023, the property developer recorded a net profit of RM43.06mil, down from RM80.09mil in the previous corresponding quarter.

The group’s earnings per share fell to 1.06 sen from 1.97 sen in the comparative quarter.

Revenue for the quarter under review contracted to RM942.72mil from RM1.02bil.

The group said in a filing with Bursa Malaysia the weaker performance was mainly owing to the property development segment, which recorded lower revenue and profit due to lower contributions from Singapore and the Central region.

The segment was also impacted by higher financing cost from interest rate hikes, unfavourable foreign exchange movement and a higher share of loss from joint ventures.

For the six months period to June 30, 2023, S P Setia recorded a net profit of RM98.51mil on revenue of RM1.91bil against net profit of RM147.59mil and revenue of RM1.89bil.