SP Setia’s 4Q17 revenue declines 27.5%

By SHAHEERA AZNAM SHAH / Pic By MUHD AMIN NAHARUL

SP Setia Bhd recorded a revenue of RM1.45 billion year-on-year (YoY) for its final quarter of 2017 (4Q17), a 27.5% drop from RM2 billion recorded a year ago, due to the completion and handover for its local and international projects.

The property developer told Bursa Malaysia yesterday that the completion has affected the company’s launches in the last financial year along with adapting to the changes in market demand.

“The company’s revenue from property development for 2017 was transitionally lower due to many projects completed and handover in Australia, Kuala Lumpur, as well as Singapore in the earlier period, coupled with the substantially sold developments which were still at early stage of construction.

“This transitional effect is a result of the strategic move taken by the company to reposition many launches in the last financial year to address changes in market demand,” it said in the statement.

The property developer’s net profit also fell 40% to RM279.6 million YoY against RM466 million recorded a year ago with 8.17 sen earnings per share.

SP Setia recorded a declined performance in lower net profit of RM932.9 million, a 2.4% slipped against RM955.8 million in the corresponding year for 2017. Revenue for the property developer also declined 20.8% to RM4.52 billion from RM5.71 billion noted a year ago.

The group has declared a final dividend of 11.5 sen per share in 4Q17, bringing the total dividend for the financial year 2017 to 15.5 sen representing a total payout ratio of 70.1%.

The property developer plans to launch about RM7.07 billion worth of projects, which involves RM4.33 billion of local launches and RM2.74 billion from international launches.

The company said it will take advantage of its established townships and future launches of mid-priced landed properties, which are currently in strong demand.

SP Setia, however, added that due to the general market condition — the high rise properties will foresee less demand on the local front.

“The launches will be concentrated in the central region with expected launches of about RM3.14 billion.

“The northern region will launch RM330 million from Setia Fontaines, while RM865 million of projects will be launched for the southern region,” it said.

On its international footprint, the company is expected to launch 486 units of apartments located in the central business district (CBD) of Melbourne and 327 units of apartments of Daintree Residence at Toh Tuck Road in Singapore, with total a combined gross development value of RM2.59 billion.

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