PETALING JAYA: S P Setia Bhd has set a sales target of RM4.8bil for 2025, supported by a robust sales pipeline of 42 ongoing projects, both domestically and abroad.
The developer closed its financial year 2024 (FY24) ended Dec 31 with RM5.02bil in sales, surpassing the year’s target of RM4.4bil.
In a statement, it noted that local projects contributed RM4.24bil in sales, accounting for 84% of total sales, while international projects added RM785mil.
The outlook remains bright as S P Setia’s remaining landbank stands at 5,451 acres, with an effective remaining gross development value of RM128.59bil.
The company reported a pre-tax profit exceeding RM1bil and a profit after tax of RM631mil for FY24, marking its highest profit in the past five years.
This strong performance enabled it to double its dividend to shareholders in FY24, paying 2.88 sen per share compared to 1.34 sen in FY23.
“Our performance in FY24 showcases S P Setia’s resilience, strategic foresight and operational excellence.
“The doubling of our dividend is a testament to our strong financial standing and commitment to maximise shareholder value.
“We are excited about the future and the growth opportunities that lie ahead,” said Datuk Choong Kai Wai, president and CEO of S P Setia.
The developer highlighted that its international ventures in Vietnam and Australia are on a growth trajectory, with both markets expected to contribute to the group’s overall performance.
It also noted that its Atlas Melbourne project, launched in the final quarter of last year, has achieved an encouraging take-up rate.
“With the core townships, new industrial developments, regional contributions and formation of the real estate investment trust, S P Setia is set to deliver sustainable value, profit growth and value to shareholders, and operational excellence across all its endeavours,” he added.
For the fourth quarter ended Dec 31, 2024 (4Q24), S P Setia posted a net profit of RM103.5mil, or an earnings per share of 2.09 sen, compared with RM148.2mil, or 3.53 sen, in 4Q23.
The company’s revenue for the quarter dipped to RM1.06bil from RM1.38bil in 4Q23, due to lower contributions from both business segments – property development and construction, investment holding and others.
The group’s revenue and profits were also driven by major land sales in Glengowrie, Taman Pelangi Indah, Setia Alam, and Pelangi tower, which contributed RM2.05bil in total.
“Additionally, higher revenue from both the Central and Southern regions have also contributed to the overall improved performance of the group, reduced by lower contribution from Australia following the handover of UNO Melbourne in FY23,” it added.
The group has reduced its borrowings by RM1.6bil, resulting in a lower net gearing ratio of 0.35 times from 0.49 times for the period in review, underscoring its effective execution of debt reduction strategies.
The payment date for the single-tier dividend of 2.88 sen is yet to be determined.
S P Setia ended 0.74% lower yesterday at RM1.34.
