by ANIS HAZIM / pic by TMR FILE

SP SETIA Bhd stated that the favourable sales momentum enabled it to post a net profit of RM11 million for the third quarter ended Sept 30, 2021, (3Q21) as compared to the net loss of RM267 million the property group booked for the same period last year.

Revenue for the quarter fell to RM594.55 million from RM1.08 billion in 3Q20 as the site progress for ongoing projects were significantly disrupted by Movement Control Order starting from June 1.

According to its filing with a local bourse yesterday, SP Setia noted that the company achieved total sales of RM3.38 billion or 89% of the full-year sales target of RM3.80 billion as of the period to date.

“Local projects contributed RM2.66 billion and the remaining RM728 million was from international projects, namely Sapphire by the Gardens and Marque Residences in Australia, as well as Daintree Residence, Singapore which were 100% sold,” the company added.

Its 40% owned Battersea Power Station (BPS) project in London has officially opened and the underground train station of the Northern Line Extension began operations on Nov 20.

“This milestone had greatly enhanced the placemaking at the development scheme and would contribute positively to the sales of properties at BPS,” it said.

SP Setia president and CEO Datuk Choong Kai Wai said that the property group is progressing well in its digitalisation journey which has facilitated its sales and marketing during the quarter.

“We will continue to make use of the digital platforms and create a more robust digital workplace to improve the effectiveness and efficiencies of the daily operation underpinned by cyber resilience,” Choong said in a statement accompanying the financial result.

SP Setia remains positive on achieving its sales target of RM3.80 billion for financial year 2021.

“We are confident in achieving the sales target while remaining steadfast in our de-gearing initiatives to pare down borrowings and optimising our capital structure to strengthen our platform in pursuit of sustainable growth,” he added.

As of Sept 30, the group has 48 ongoing projects with effective remaining land banks of 2967.96ha valued at a gross development value of RM124.6 billion and total unbilled sales of RM9.84 billion.

For the nine months ended Sept 30 (9M21), SP Setia posted a net profit of RM161 million as compared to a net loss of RM377.25 million suffered in the same corresponding period last year.

Revenue for the 9M21 stood at RM2.73 billion compared to RM2.11 billion in 9M20.

SP Setia shares closed one sen lower at RM1.38 yesterday on the release of its results, giving it a market valuation of RM5 billion.