SP Setia full-year earnings jump to RM710mil

Property developer SP Setia Bhd posted a net profit of RM119.68mil for the fourth quarter ended Oct 31, 2015 on the back of increased revenue and profit recognition.

The company posted a 14.68% rise in revenue of RM1.41bil compared to the previous corresponding quarter.

For the full year, the company posted net profit that jumped 75% to RM709.98mil and revenue that rose 47.13% to RM5.60bil.

SP Setia acting president and chief executive officer Datuk Khor Chap Jen said in a media statement that the company had fared reasonably well despite a challenging property market.

“We have been strategic in our launches this year to suit market demand while continuing to deliver on our promises of quality, innovation and reliable products and services.

“We are confident that the group is on track to achieve our RM4bil sales target by December 2015,” he said.

The company’s sales for the fourth quarter of the financial period stood at RM911mil.

As at October 2015, total sales for the 12 month period from Nov 1, 2014 to Oct 31, 2015 totalled RM3.45bil with Malaysian projects contributing RM2.20bil towards total sales while overseas projects contributed RM1.25bil.

Ongoing projects that contributed to the profit and revenue included Setia Eco-Park in Shah Alam, Setia EcoHill in Semenyih, Setia Eco Glades in Cyberjaya, Setia Sky Residences at Jalan Tun Razak, KL Eco City at Jalan Bangsar, Aeropod in Kota Kinabalu, Setia Sky 88 in Johor Bahru, Setia Pearl Island and Brook Residences in Penang, 18 Woodsville and Eco Sanctuary in Singapore, as well as Fulton Lane in Australia.

Khor said the local property market continues to face challenges due to the current economic uncertainties of a weaker ringgit, lower oil price, rising costs of living after the implementation of the goods and services tax and more cautious lending from banks.

He said the company’s strategy of launching properties at the mid-price range remains fruitful as local projects contributed RM754mil in sales in the quarter under review. - By The Star