PETALING JAYA: Despite the weak earnings in the first quarter ended March 31, 2026 (1Q26), S P Setia Bhd remains confident of achieving its full-year sales target, with potential joint ventures and industrial park expansion to support growth through financial years 2026 (FY26) to FY28.
CGS International (CGSI) Research estimates that the property group currently holds about RM1.5bil of unbilled land sales, comprising RM650mil from industrial land and RM920mil from non-core land disposals.
It expects this to be progressively recognised over the next two years.
S P Setia reported a lower core net profit after a preferential dividend of RM11.3mil in 1Q26, down minus 57% year-on-year (y-o-y).
“We deem 1Q26 earnings as within expectations, despite accounting for only 2% to 3% of our and Bloomberg consensus FY26 estimates.
“This is backed by our expectations of lumpy earnings for the rest of FY26, mainly from land sales recognition,” the research house said in a note to clients. It added that y-o-y decline in 1Q26 core net profit was due to lower land sales profit margins and higher effective tax rate.
The company also recorded weaker 1Q26 new sales of RM555mil, down by minus 23% y-o-y.
CGSI Research said while this accounted for only 12% of targeted FY26 sales of RM4.6bil, “management remains upbeat on meeting the target, backed by a robust launch pipeline ahead over the rest of FY26”.
