S P Setia 1Q net profit RM38.2 million, ups sales target to RM2 billion

KUALA LUMPUR: S P Setia Bhd posted net profit of RM38.19 million in the first quarter ended Jan 31, 2010, up 22.5% from the RM31.17 million a year ago and this saw the property developer raising the group's sales target by 25% to RM2 billion for the current fiscal year.

It said on Thursday, March 18 revenue rose almost at the same pace of its earnings, up 22.5% to RM363.89 million from RM297.07 million. Earnings per share were 3.76 sen versus 3.07 sen.

"The group’s profit and revenue were mainly derived from its property development activities carried out in the Klang Valley, Johor Bahru and Penang," it said.

S P Setia said the ongoing projects, which contributed to the group’s profit and revenue, include Setia Alam and Setia Eco-Park at Shah Alam, Setia Walk at Pusat Bandar Puchong, Setia Sky Residences at Jalan Tun Razak, Bukit Indah, Setia Indah, Setia Tropika and Setia Eco Gardens in Johor Bahru and Setia Pearl Island in Penang.

S P Setia said for 1Q, the group set a new benchmark, in terms of highest first quarter sales achieved of RM608 million – a 16% improvement from its previous high achieved in the first quarter of FY2008 and almost six times the amount recorded a year ago of RM102 million.

"On the back of such strong sales, management has decided to increase the group’s FY2010 sales target by 25% to RM2 billion," it said.

As at Feb 28, 2010, the group’s sales for the first four months of the financial year totalled RM760 million. The group targets to continue strengthening its core landed residential earnings base through sales of existing and new product launches.