SP Setia achieves target despite tough conditions


  • Property
  • Thursday, 27 Feb 2020

“We are pleased with this achievement and proud to maintain our position as the top property developer in Malaysia in terms of sales, ” said Datuk Khor Chap Jen(pic), president and CEO of SP Setia in a statement.

PETALING JAYA: Despite the challenging market conditions, SP Setia Bhd achieved total sales of RM4.56bil, to meet its RM4.55bil sales target for FY19.

This was in spite of global geopolitical issues such as the US-China trade tensions, unrest in Hong Kong as well as tight lending criteria in Malaysia.

For the year ended Dec 31,2019, the group’s revenue and profit before tax came in at RM3.93bil and RM598mil, respectively.

Local projects are the biggest contributor to sales, bringing in RM4.01bil or about 88% of sales, while the remaining 12% is fulfilled by international projects such as UNO Melbourne in Australia, Daintree Residence in Singapore and EcoXuan in Vietnam, according to the company.

On the local front, sales were largely from the central region with RM2.78bil, aided by a RM747mil contribution from the southern region and RM480mil from the northern region.

“We are pleased with this achievement and proud to maintain our position as the top property developer in Malaysia in terms of sales, ” said Datuk Khor Chap Jen, president and CEO of SP Setia in a statement.

For the final quarter of FY19, the group witnessed its strongest period, with a RM1.49bil spike in sales.

It said this was attributed to eleventh-hour purchases by home buyers to take opportunity of the incentives of the Home Ownership Campaign (HOC).

A total of RM675mil in sales from the HOC were secured during the fourth quarter.

For the full-year, total sales brought in by the HOC amounted to RM1.82bil.

SP Setia said its efforts to clear inventories had also contributed an additional RM637mil.

Looking ahead, the group pointed out that it would continue to concentrate on launching landed residential products, especially in its established township developments.

In addition, the group will also launch commercial products such as shop lots with a combined GDV of about RM871mil in Alam Impian, Kota Bayuemas, Temasya Glenmarie, Setia Eco Glades and Taman Pelangi.

“Leveraging on the versatility of product offerings of the group, SP Setia is confident of retaining its position as the leading developer in Malaysia while maintaining the sales target of RM4.55bil for FY2020, ” said Khor.

However, as the global outbreak of Covid-19 virus and its impact on the economic outlook remains uncertain, he said the group “will monitor closely how the situation unfolds”.

The group has an unbilled sales pipeline of RM10.67bil, 48 ongoing projects and an effective remaining land bank of 8,858 acres with a GDV of RM141.84bil as at December 31,2019.

It declared a preferential dividend of 6.49% and 5.93% per annum in respect of the Islamic Redeemable Convertible Preference Shares A and B respectively, for the period between July 1,2019 until December 31,2019.

It also declared a dividend of one sen per share, representing a payout ratio of 50% for FY19.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Across The Star Online