SP Setia posts 2Q21 net profit of RM74.8m


SP SETIA Bhd announced a net profit of RM74.81 million in the second quarter ended June 30, 2021 (2QFY21), from a net loss of RM134.34 million a year ago.

In a filing to Bursa Malaysia yesterday, the company said revenue was RM1.08 billion, more than three times the RM331.33 million recorded last year, contributed by its property development segment.

The group’s earnings per share stood at 1.84 sen, compared to a loss per share of 3.32 sen a year ago.

SP Setia’s better performance was driven by better progress in terms of revenue recognition, following the recovery of construction progress.

For the cumulative six-month period ended June 30, 2021 (1HFY21), the group registered a net profit of RM150.04 million against a net loss of RM110.25 million a year earlier. Revenue rose to RM2.14 million, more than double 1HFY20’s RM1.03 billion.

SP Setia president and CEO Datuk Khor Chap Jen (picture) said the group remains positive on the market outlook and will continue to focus on achieving its sales target set of RM3.8 billion.

He added that the group maintains an optimistic yet cautious outlook, underpinned by strong pent-up demand from home buyers amid the pandemic backdrop.

“We expect the economy in general and the property sector specifically to recover gradually in the coming quarters at the back of efficient rollout of the vaccination programme to achieve herd immunity, as well as the imposition of various standard operating procedures in our fight against Covid-19.

“Once these efforts are successful in curbing the pandemic, it is our hope that the economy will be reopened in stages, and its recovery process will be expedited,” he said in a press statement accompanying the group’s financial results yesterday.

According to SP Setia, local projects contributed RM2.07 billion or approximately 77% of the sales. The remaining RM639 million or approximately 23% were contributed by international projects, mainly from Daintree Residence in Singapore where the demand for residential properties has gained traction following the upliftment of the circuit breaker and opening up of the economy.

In Malaysia, the sales were primarily derived from the Central region at RM1.64 billion, followed by contribution from the Southern region at RM296 million, while another RM142 million was from other regions.

The group noted that completed inventories worth RM425 million were also cleared during these six months.

Khor said the results achieved for the 1H21 were largely attributed to the strong sales performance for the first five months of the financial year, buoyed by a generally upbeat local market sentiment early this year.

Khor also noted that a total gross development value (GDV) of RM687 million landed properties, comprising mostly affordable double-storey terrace and/or semi-detached homes, were launched during this period with high take-up rates seen especially in established and matured townships.

He said Setia Alam and Bandar Kinrara’s bookings hovered above 90% for the said launches.

Meanwhile, Khor said the group will be offering new launches worth RM2.47 billion in 2H21 in various townships.

The group is currently backed by 47 ongoing projects, with an effective remaining landbank of 7,483 acres valued at a GDV of RM125.1 billion and total unbilled sales of RM10.3 billion, which will tide the group over the next two years.