S P Setia records profit before tax rising to RM181.2 million in 1Q2024, 56% increase compared to the same period in previous year

• The group’s property development segment achieved profit before tax of RM180.8 million in 1Q2024; a 38.6% step up from last year

KUALA LUMPUR (May 16): S P Setia Bhd saw a 56% uptick in profit before tax to RM181.2 million in 1Q2024 “highlighting the consistent efficiency in its wide-ranging operations, particularly in managing landbanks and commercial assets, including office spaces and retail complexes”.

The group’s property development segment achieved profit before tax of RM180.8 million in 1Q2024; a 38.6% step up from last year, driven by higher gross profit as the group benefits from higher contribution from its Eco Xuan development project in Vietnam, supported by landbank management and higher contribution from domestic property development, S P Setia stated in a media release.

Meanwhile, consistent de-gearing efforts resulted in 8% improvement of Net Gearing ratio (0.45x) achieved in 1Q2024 from 0.49x in the previous quarter.

Sales have remained strong, with a total of RM1.42 billion sales achieved in the quarter mainly contributed by the Southern and Central region domestically in Malaysia, with 2024 sales target RM4.4 billion on track, bolstered by the 4% to 5% projected economic growth for this year.

With new projects launched during the quarter with a combined GDV of RM146.2 million and favourable market uptake, S P Setia's projections for continued upward momentum look secure. The group has unbilled sales and 41 active projects “spread across its strategically positioned landbanks”, stated the group.

The group has strengthened its foothold in Shah Alam and Cyberjaya, alongside “advancements” in Vietnam and Australia overseas.

"Our first-quarter results is a testament to the robustness of our business model and the success of our strategic market expansions. We've seen growth across the board, and while we're looking ahead with positivity, we're conscious of the needto maintain a steady hand on the tiller," said Datuk Choong Kai Wai (pictured), president & CEO of S P Setia.

"It's heartening to see our efforts bear fruit on the international stage. We are pushing our expansion ambitions while exercising caution and keen market insight.

"We're navigating the challenges presented by a volatile global economy with a measured and strategic approach that keeps us at the forefront of industry innovation and market leadership," said Choong.

S P Setia marks its 50th anniversary this year. “Our purpose to build sustainable communities have driven us for the past 50 years and will continue to do so,” added Choong.

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