SP Setia plans RM7b of projects for FY18

In its filings with Bursa Malaysia, Yong Tai said its wholly-owned subsidiary YTB Impression Sdn Bhd terminated the deal due to non-fulfilment of the condition precedent as stated in clause 3.1(c) of the joint development agreement. Yong Tai fell half a sen to close at 32.5 sen yesterday.

KUALA LUMPUR: SP Setia Bhd said it plans to launch RM7.07bil in projects for FY18, and set a sales target of RM5bil, of which 80% is expected to come from local projects.

"The focus is to leverage on the Group’s established townships and roll out more mid-priced landed properties where the demand for these staple products have proven to be strong.

"Given the general market conditions, there will be limited launches on high rise properties on the local front," it said in a statement announcing its financial results for the year ended Dec 31,2017.

On the international front, it also plans to launch the RM1.14bil-GDV UNO Melbourne in the central business district of Melbourne and the RM1.45bil-GDV Daintree Residence in Singapore

SP Setia Bhd recorded lower earnings of RM932.86mil for the year, versus RM955.82mil posted in the previous year, amid a soft property market.

In a statement to the stock exchange, SP Setia reported that revenue for the year dropped 21% to RM4.52bil from RM5.71bil a year earlier due to the timing of project completions and handovers.

"The Group’s revenue from property development for the year-to-date was transitionally lower as a result of many projects completed and handover in earlier period, for example, Parque Melbourne in Australia, many phases in KL Eco City at Jalan Bangsar and Eco Sanctuary in Singapore. 

"Whereas, many substantially sold developments were still at early stage of construction in the current year. This transitional effect is a result of the strategic move taken by the Group in repositioning many launches in the last financial year to address changes in market demand."

The group achieved total sales of RM4.92bil in FY17, inclusive of the RM859mil contribution from I&P Group Sdn Berhad which it acquired in December 2017, via pooling of interests. 

SP Setia said its own total sales of RM4.06bil surpassed its sales target of RM4bil. 

The group declared an interim dividend of 11.50 sen a share, which brings total dividend for the year to 15.50 sen a share.

For the final quarter of the year, the group posted earnings of RM279.57mil versus RM466.08mil in the previous corresponding quarter.

The group said its prospects remain positive moving forward as it is underpinned by an unbilled sales pipeline of RM7.72bil, 44 ongoing projects and effective remaining land banks of 9,606 acres with a GDV of RM128.37bil as at Dec 31, 2017. 

On the acquisition of I&P Group, SP Setia said it augurs well for the group as the 4,276 acres of additional landbank from the acquisition are in prime locations. 

"Most are synergistically located within the growth areas of Klang Valley and Johor Bahru, where the “Setia” brand has established a stronghold. This will entrench the Group’s position as the leading township developer in Malaysia and propel the Group to greater heights."