S P Setia posts sales of RM2.7 bil, confident of hitting FY2022 sales target

• Sales came mainly from local projects, which contributed RM2.34 billion or approximately 87%, while international projects contributed another RM359 million or approximately 13% of sales.

SHAH ALAM (Nov 17): S P Setia Bhd today announced it “secured” total sales of RM2.70 billion for the nine months ended Sept 30, 2022, while registering profit before tax of RM370 million against a revenue of RM2.75 billion.

According to a media release from S P Setia, sales came mainly from local projects, which contributed RM2.34 billion or approximately 87%, while international projects contributed another RM359 million or approximately 13% of sales.

In Malaysia, contribution came from the central region with RM1.68 billion, “aided by RM465 million from the southern region, while the northern region contributed RM201.0 million”, said the developer.

"Our concerted efforts in clearing completed inventories have paid off, whereby RM478.0 million were sold.

“Meanwhile, RM592 million of bookings were secured as at Sept 30, 2022. We are optimistic that we will hit our sales target for this year," said Datuk Choong Kai Wai, president & chief executive officer of S P Setia.

"The group's local projects progress is envisaged to be improved by fourth quarter of this year despite the recent acute labour shortages faced by the real estate industry.

"Our developments in Australia are progressing well, whereby Sapphire by the Gardens was delivered to homebuyers last month, whilst UNO Melbourne is slated for partial completion by this year end,” added Choong.

“Hence, we expect revenue from Australia to contribute significantly to our final quarter of FY2022."

S P Setia stated that it has “launched several products that match buyers' affordability level” and its projects “have received good responses in several major townships”.

Overseas, it said that it “is also gaining a stronger foothold in Vietnam. Notably, Setia Eco Lakes Vietnam launched several landed residential projects in 3QFY2022, which were well received”.

SP Setia “is also embarking on new areas of growth such as industrial parks/properties where there is solid demand prevalent in the market”. Two tracts of landbank in Setia Alaman, Klang and Taman Industri Jaya, Johor have been identified for this industrial space. In September 2022, it also opened both its Amari brand hotels in KL Eco City and Penang concurrently.

"Despite the current economic challenges, we believe people are still on the lookout for well-built homes in well-planned communities. With such offerings from S P Setia, we believe the group will achieve our sales target of RM4 billion set for this financial year,” said Choong.

“Backed by an unbilled sales totalling RM8.40 billion in place, this will provide earning visibility to the group for the short- to mid-term," he added.

The group is currently “anchored by 47 on-going projects and an effective remaining land bank of 6,687 acres with a gross development value of RM119.47 billion as at Sept 30, 2022”.