S P Setia Bhd’s net profit for the second quarter ended June 30, 2024 (2Q24) surged nearly sevenfold to RM295 million, compared with RM43.1 million a year earlier.

The property developer reported a 58.5% year-on-year increase in revenue, reaching RM1.5 billion, driven by a significant rise in land sale income, which grew more than sixfold to RM564 million from RM86 million.

For the first half of 2024 (6M24), net profit tripled to RM372.4 million from RM98.5 million, while revenue rose by 55.5% to RM2.97 billion from RM1.91 billion.

S P Setia has achieved RM2.3 billion in land and development sales this year, surpassing half of its RM4.4 billion target for 2024.

The majority of sales came from the central region, particularly the Setia Alaman industrial park, while the southern region, notably Johor, contributed 35% of sales, with further growth expected due to the Rapid Transit System Link and Special Economic Zone developments.

“We are optimistic about our operations and financial outlook for the rest of the financial year. This performance underscores our strategic focus on the Malaysian market, particularly in the southern and central regions,” said S P Setia President and CEO Datuk Choong Kai Wai.

S P Setia plans to capitalise on rising demand for industrial development by exploring investment opportunities and potential strategic partnerships for lands earmarked for industrial park development, especially in Setia Alaman and the southern region.

The company also intends to launch major projects, such as the first phase of Setia Federal Hill in Kuala Lumpur, with an estimated gross development value of RM1.4 billion.

“Our strategic portfolio management and project launches are setting a strong foundation for sustainable growth,” added Choong.

“We will intensify our efforts to capitalise on market opportunities and deliver more value to our shareholders in the long run.”

Shares in S P Setia gained 1 sen or 0.66% to close at RM1.52 today, valuing the company at RM7.39 billion. — TMR