SP Setia records RM875mil sales in 1H

  • Corporate News
  • Thursday, 13 Aug 2020

KUALA LUMPUR: SP Setia Bhd's main focus will be on converting its property bookings into sales as it nagivates through a residential market slowed by the Covid-19 pandemic and movement restriction orders.

In a statement, it announced that it had registered sales of RM875mil in the first half of the year.

Additionally, it recorded RM1.42bil in bookings, which it is now focused on converting into sales, said SP Setia president and CEO Datuk Khor Chap Jen.

“Since the Movement Control Order and subsequent Recovery Movement Control Order were imposed to contain the Covid-19 pandemic, activity in terms of new launches and transactions has generally been slower in the residential market.

"More emphasis was placed on the clearing of inventories and the careful rationalisation of launches,” he said.

For the second quarter ended June 30, SP Setia recorded a net loss of RM141.55mil on the back of RM331.33mil revenue.

This brings the group's net loss in the first half of the year to RM113.09mil versus a profit of RM189.05mil in the previous corresponding period, while revenue was halved to RM1.03bil as compared to RM2.2bil in the first half of 2019.

According to SP Setia, the loss was mainly owing to a one-off impairment of RM145.9mil on completed inventories.

“Looking ahead, the Group expects to pick up and ride on the momentum of the increase in real estate activities spurred by Penjana initiatives.

"The group continues to perform resiliently in this current financial year backed by unbilled sales totalling RM9.68bil which will tide the group over for the next two years,” said Khor.

He added that the group will be selective with new launches concentrating on mid-range landed units in established townships to cater for owner-occupiers.

Some cost rationalisation initiatives have also been put in place to improve operational efficiency for the current financial year.

As at June 30, 2020, the group has 48 ongoing projects and an effective remaining landbank of 8,711 acres with a gross development value of RM139.4bil.
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