S P Setia banking on industrial assets


PETALING JAYA: S P Setia Bhd is preparing for a year of accelerated industrial expansion as it sharpens its development pipeline across Penang, Johor and Vietnam, positioning the business for what analysts describe as a more structurally diversified earnings base.

The shift came as the group reported a 78% jump in sales for the third quarter ended Sept 30, 2025 (3Q25) to RM1.59bil, driven mainly by land transactions, even as net profit slipped 32% year-on-year to RM68mil.

Maybank Investment Bank Research (Maybank IB) voiced its optimism on S P Setia’s prospects following a recent briefing, noting the group had outlined clearer plans ahead, with a stronger push into industrial developments in Penang, Vietnam and Johor.

The research house added that the property developer’s management has reiterated that there would be no more major land sales, with the focus shifting to unlocking value through development and industrial-led growth.

It also noted that the proposed real estate investment trust remained in progress, while construction of Battersea Power Station phase 3C is on track to begin by 2026.

It maintained its “buy” call on S P Setia, with a higher target price of RM1.02, up from RM1 previously.

Maybank IB highlighted rising traction in the group’s industrial pipeline, stating that in Penang, the Setia Fontaines Industrial Park – comprising 480 acres – has a gross development value of RM3bil.

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