KUALA LUMPUR: S P Setia Bhd posted net profit of RM52.83mil on the back of RM864.91mil in revenue in the first quarter ended March 31, 2019 as the “wait-and-see” attitude continues to linger.
It said on Thursday the group secured sales of RM718mil where local projects contributed RM678mil or nearly 94% of total sales and international projects RM40mil.
Commenting on its results, it said purchasers were awaiting positive leads for the property market to recover, it said in a statement.
The net profit in Q1 FY19 was down by 14% from the RM61.48mil a year ago. Revenue rose by 31.9% from RM655.50mil. Earnings per share were 1.33 sen compared with 1.70 sen.
In Q1, S P Setia launched projects with a gross development value (GDV) of RM339mil comprising mainly of landed properties.
It said despite the lacklustre property market, there is still strong demand for landed residential properties from owner occupiers looking to settle down in established township.
For instance, the launch of Clarino, a phase of double-storey terrace houses priced from RM649,000 in the matured township of Alam Impian in March 2019 achieved a commendable take-up rate of 98% within a month.
S P Setia president and CEO Datuk Khor Chap Jen said for the remaining part of the financial year, the group has planned a total of RM6.47bil worth of launches, focusing on the Klang Valley with RM4.65bil and Johor with RM1.12bil.
In Klang Valley, the planned major launches are in Setia Alam, Bandar Kinrara, Alam Impian, Setia Alamsari, Temasya Glenmarie, Setia Tropicale, Setia Ecohill 2, KL Eco City and Setia Sky Seputeh – Tower B, while in Johor, the planned major launches are in Setia Tropika, Bukit Indah Johor, Setia Eco Gardens and Taman Industri Jaya.
Over in Penang, following the well-received launches of the shop offices last year, Setia Fontaines plans to launch approximately RM349mil worth of GDV where the much anticipated landed residential properties, priced from RM330,000 will be unveiled.
“The group is monitoring the property market closely and with the pipeline of diversified products, mainly concentrated on landed residential properties, we will roll out more launches the moment the property market picks up,” Khor said.
S P Setia Group is anchored by 45 ongoing projects with 9,477 acres of effective land banks remaining and potential GDV of RM145.90bil.
“Prospects going forward remain positive with total unbilled sales of RM10.95bil as at March 31, 2019.
“Given the versatility of the planned launches in the pipeline as well as the many campaigns and initiatives in place to promote home ownership, the group is working towards the sales target of RM5.65 billion for the current financial year,” it said.