S P Setia announces above-target total sales of RM2.56 bil for 1H2023

• Sales achievement of RM2.56 billion for the first half of 2023, representing more than 60% of the FY2023 sales target demonstrates robust demand for the group’s offerings.
• 19% higher gross profit year-on-year of RM577.9 million for the first half 2023 driven by enhanced operational efficiency and the continuing recovery of the Malaysian property market.
• Improvement of the net gearing ratio to 0.55x signifies the progress and dedicated commitment by the group in strengthening its capital framework and strategic portfolio management.

KUALA LUMPUR (Aug 16): S P Setia Bhd announced today it registered total sales of RM2.56 billion, with local projects contributing RM2.19 billion or approximately 86%.

Sales in the Central region generated RM1.49 billion, “supported by RM589.0 million from the Southern region and RM74.0 million from the Northern region”, stated S P Setia in a media release today. Remaining sales came mostly from the international segment.

Meanwhile, secured total bookings were RM470 million as of June 30, 2023.

S P Setia’s performance “has demonstrated notable improvement, evidenced by a higher gross profit of RM577.9 million for the first half 2023, a 19% increase year-on-year (RM311.3 million gross profit in the current quarter, a 13% increase from 2Q 2022)”. “This positive trajectory can be attributed to enhanced operational efficiency and the continuing recovery of the Malaysian property market, which, in turn, has propelled the revenue year-to-date to RM1.91 billion (RM942.7 million in the current quarter),” stated the group.

With 44 ongoing projects and unbilled sales amounting to RM6.82 billion as of June 30, 2023, its “earnings visibility in the short to mid-term is robust”.

Disciplined debt reduction

The group added that despite the global challenges posed by persistent inflation and higher interest rates, “it remains optimistic about achieving a noteworthy performance for the financial year 2023”. Through “disciplined debt reduction programme and de-gearing roadmap implementation across all its business units, the net gearing level has been reduced to 0.55x and is expected to improve further progressively”.

S P Setia is also “committed to monetising non-strategic land and divesting non-core assets”. It recently announced the disposal of 500 acres of land in Semenyih, Selangor and another eight parcels of land measuring 959.7 acres in Tebrau, Johor, for a total consideration of RM940 million. The revenue generated from the disposal of land will strengthen its financial position, reducie gearing levels and allow it to pursue future growth opportunities.

Industrial development and sustainability initiative

S P Setia is also preparing to launch its first industrial development offering in the Klang Valley, known as Setia Alaman. “This will feature a combination of industrial and commercial assets, bringing a unique blend of functionality and business opportunities to the area,” it stated.

The hroup also introduced its latest sustainability and innovation-led initiative, Setia i-Home, launched in June 2023. “This initiative marks another milestone in the group’s unwavering dedication to environmental sustainability.”

Setia i-Home showcases a range of advanced features such as a smart home system, solar switch ready, Green Switch, electric vehicle switch, rainwater harvesting systems, and a healthier air quality environment, designed to promote energy efficiency and reduce carbon footprint.

“By adopting this multi-faceted approach, S P Setia reinforces its pledge to creating green, sustainable communities and strengthening its position as an industry leader. This is in line with the Group’s commitment on Environmental, Social and Governance or ESG initiatives.”

“The strong performance of S P Setia in the first half of 2023 demonstrates our ongoing commitment to delivering high-quality developments and solutions. We are pleased with these positive results, which reflect the strong demand for our projects, both locally and internationally,” said Datuk Choong Kai Wai, president & CEO of S P Setia.

“We are grateful for the support and trust of our stakeholders, especially our staff, known fondly as Team Setia, who have worked tirelessly for the said results. We will continue to focus on delivering quality developments and sustainable solutions, while continuing our long-term plan to move towards a lighter asset structure and leveraging on our effective remaining land bank of 6,870 acres with a total GDV of RM125.77 billion. We remain confident in achieving our targets for this financial year,” added Choong.

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