(Left-Right) Datuk Wong Tuck Wai acting Deputy President & COO , Datuk Khor Chap Jen Acting President & CEO and Choy Kah Yew acting CFO viewing a report during the press conference on their Financial Results & Group Update for Year Ended 31 December 2015 .. -- M. Azhar Arif/The Star 25 FEB 2016
KUALA LUMPUR: Property developer S P Setia Bhd has set a sales target of RM4bil for this year, hoping to at least match last year’s performance despite tougher market conditions.
The company has projected 80% of its sales to come from the domestic market, with an ongoing development in Australia to contribute the rest.
“We can maintain last year’s sales target as demand for affordable housing is still strong,” acting president and chief executive officer Datuk Khor Chap Jen told a press conference on the company’s financial results for the financial year ended Dec 31, 2015 (FY15).
Khor said the company was expecting 80% of sales this year to come from the Klang Valley, Johor and Penang, where the bulk of its projects are, and the remaining 20% to come from its development in Melbourne, Australia.
Local projects which contributed to the profit and revenue achieved included Setia Alam and Setia Eco-Park in Shah Alam, Setia EcoHill in Semenyih, Aeropod in Kota Kinabalu and Brook Residences and Setia V Residences in Penang, while the overseas projects were 18 Woodsville and Eco Sanctuary in Singapore and Fulton Lane in Melbourne, Australia.
S P Setia has acquired a third parcel of land measuring 2,074 sq m in Melbourne for A$6.68mil.
“With an estimated gross development value of A$34mil, the growth opportunity remains strong and we continue to be on the lookout for further land banking opportunities in Australia,” Khor said, adding that the group was also looking out for land in the Klang Valley, Johor and Penang.
For the 14 months to Dec 31, 2015, the group achieved a net profit of RM918mil on revenue of RM6.7bil. (The company has changed its financial year end from Oct 31 to Dec 31, so there are no comparative figures.)
S P Setia, which derived a third of its sales from overseas, registered total sales of RM4.3bil over the 14-month period.
The group has declared a single-tier final dividend of 19 sen per share, which is subject to shareholders’ approval at its upcoming AGM.
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