SP Setia’s 3Q19 net profit jumps 67.1% to RM109m on forex gain

The group aims to launch another RM2.2b worth of projects in the remaining months of 2019

By FARA AISYAH / Pic By HUSSEIN SHAHARUDDIN

SP SETIA Bhd’s net profit jumped 67.1% year-on-year (YoY) to RM108.93 million in the third quarter ended Sept 30, 2019 (3Q19), from RM65.19 million a year ago, contributed by a RM37.8 million foreign-exchange (forex) gain.

Its earnings per share for the quarter was, however, lower at 1.06 sen, compared to 1.67 sen registered in 3Q18, the group said in an exchange filing yesterday.

The property developer’s quarterly revenue also fell 6.14% YoY to RM932.07 million from RM993 million in the same period last year, when it completed and handed over the Australian project, Maison Carnegie.

Under construction and completed projects which contributed to the group’s revenue and profit during the quarter include Setia Alam, Setia Eco Park, Alam Impian and Temasya Glenmarie in Shah Alam; Setia EcoHill, Setia EcoHill 2 and Setia Mayuri in Semenyih; Setia Eco Glades and Setia Safiro in Cyberjaya, Setia Eco Templer in Rawang; and Alam Sutera in Bukit Jalil, among others.

“Amid the challenging landscape of a subdued property market, the strategy is to launch more mid-range landed properties in our flagship townships where the underlying demand by owner-occupiers is still favourable,” SP Setia president and CEO Datuk Khor Chap Jen said.

For the first nine months ended Sept 30, 2019, the group’s net profit fell 47.23% YoY to RM300.48 million, while revenue increased 21.79% YoY to RM3.13 billion.

The group secured sales of RM3.07 billion for the nine-month period, of which local projects contributed RM2.6 billion, while international projects contributed RM467 million.

The sales secured were largely from the central region at RM1.75 billion, while southern and northern regions contributed a combined RM854 million.

As for international projects, UNO Melbourne in Australia, Daintree Residence in Singapore and Eco Xuan in Vietnam contributed RM435 million in sales.

For the first nine months of the year, projects with a combined gross development value (GDV) of RM2.71 billion were launched.

The group aims to launch another RM2.17 billion worth of projects in the remaining months of 2019, which will bring the total GDV of launches for the year to RM4.88 billion.

Notable launches are planned in the existing townships of Setia Alam, Setia Eco Hill, Setia Eco Templer, Setia Eco Park, Bandar Kinrara, Alam Impian, Setia Eco Garden and Setia Tropika.

The developer will also be launching two-storey linked houses at Setia Warisan Tropika, its latest township located in Bandar Baru Salak Tinggi, in mid-November this year.

Given the versatility of the planned launches, the encouraging response to the Home Ownership Campaign and initiatives introduced to promote homeownership, the group remains positive and will work towards achieving its sales target of RM4.55 billion.

Anchored by 46 ongoing projects with 8,984 acres (3,635.7ha) of effective landbank remaining and a potential GDV of RM143.82 billion, the developer said prospects going forward remain positive with total unbilled sales of RM10.52 billion as at 3Q19.