S P Setia secures RM1.67bil sales in 1H

“The take-up rate of the new phase in Setia Eco Templer hovers above 90%.” - Datuk Choong Kai Wai

KUALA LUMPUR: S P Setia Bhd has secured total sales of RM1.67bil for the six months ended June 30, 2022 with pre-tax profit and revenue standing at RM253.4mil and RM1.89bil respectively.

In a statement yesterday, the property developer said sales were mainly derived from local projects, which contributed RM1.38bil or 83% of total sales.

“The remaining RM294mil were mainly from international sales,” it said.

For the second quarter ended June 30, its net profit rose to RM80.09mil from RM74.81mil in the previous corresponding period, while revenue stood at RM1.02bil compared with RM1.08bil a year earlier.

Basic earnings per share was at 1.97 sen, compared with 1.84 sen previously.

In the same statement, S P Setia president and chief executive officer Datuk Choong Kai Wai said: “It is worth noting that RM272mil of completed inventories were sold and RM559mil of bookings were secured during this period in review.

“Our key focus remains steadfast on the swift conversion of the latter into sales.”

Despite the challenges facing the real estate industry due to elevated building material costs, labour shortages, interest rate upcycle and inflationary pressure, Choong said potential homebuyers are seeking landed properties in established townships.

“This augurs well for S P Setia as the group is known for quality townships prioritising conveniences and amenities. Many potential buyers realise the importance of owning a home that complements their lifestyle under the new norm.

“The recently announced 100% stamp duty exemption for first-time homebuyers of properties priced RM500,000 and below through the i-MILIKI will assist in expediting the property market’s recovery.”

For the quarter under review, the group launched a total gross development value (GDV) of RM300.7mil landed properties comprising double-storey terraces, semi-detached and bungalows.

“The take-up rate of the new phase in Setia Eco Templer hovers above 90%. Other successful launches were also observed in townships such as Setia Eco Glades,” said Choong.

He added that continuous efforts are made to enhance the environmental, social and governance aspects into the conceptualisation, design and construction stages of the group’s projects, following the increased emphasis on sustainability and climate change mitigation.

“For instance, the strategic partnership with Tenaga Nasional Bhd to provide electrical vehicle port and renewable energy solutions to potential home buyers is in line with the group’s commitment to promote green energy and reduce carbon emissions.

“Besides, cost reduction initiatives are being deployed across group-wide operations in parallel to the various promotional campaigns to boost sales and clear unsold inventories.”

Choong noted that the past two years of disruptions had also enabled the company to explore new areas of development to help scale its business, which has resulted in S P Setia developing new competencies across the group and diversifying into new potential revenue streams.

“One of these diversifications is in the medical service industry, where we have announced our collaboration with Qualitas Medical Group Sdn Bhd to set up an ambulatory care centre in Setia Alam as part of our revenue diversification strategy,” he said.

The group is anchored by 47 ongoing projects with an effective remaining land bank of 7,042 acres.

GDV stands at RM120.88bil as at June 30, backed by unbilled sales totalling RM8.71bil and providing earnings visibility in the short to mid-term.

Despite the current challenges disrupting the world economy, S P Setia said the group would continue to monitor the situation to attain its overall performance.

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