SP Setia’s 3Q18 net profit plunges 81.3% to RM65m

By FARA AISYAH

SP SETIA Bhd’s net profit for the third quarter ended Sept 30, 2018 (3Q18), plunged by 81.31% year-on-year (YoY) to RM65.19 million due to lower profit from the property development segment.

In an exchange filing yesterday, the group said profit before tax for the property development segment was lower than 3Q17, which had a significant profit contribution from the completion of Phase 1 of the Battersea Power Station in the UK.

“The developer’s revenue for the quarter also dropped by 6.6% YoY to RM993 million due to lower contribution from the construction segment,” it noted.

SP Setia said the revenue for construction segment in the quarter was mainly derived from the supply of ready-mix concrete, as well as the construction of Kompleks Institut Penyelidikan Kesihatan Bersepadu in Setia Alam, Selangor.

The group added that it will focus more on the local market in the remaining months of 2018 with emphasis given to the mid-range landed properties in the Klang Valley and Johor Baru.

Going forward, SP Setia said the company’s prospects remain positive with a total of unbilled sales of RM7.92 billion, anchored by 46 ongoing projects and an effective remaining landbank of 9,548 acres (3863.94ha) with a gross development value of RM155.26 billion as at Sept 30, 2018.