S P Setia 4Q net profit jumps 54%, sets sales target of RM5.5b in FY2013

KUALA LUMPUR (Dec 12):  S P Setia Bhd net profit for the fourth quarter ended Oct 31, 2012 jumped 54% to RM127.03 million from RM82.47 million a year earlier, due mainly to contributions from its property development.

The property developer achieved the result on the back of sales of total sales of RM4.23 billion, or up 29% year-on-year from RM3.29 billion in sales a year earlier.

S P Setia said on Wednesday that this was fifth consecutive year of increase in the Group’s annual sales and the first time that total Group sales have exceeded the RM4 billion mark.

Meanwhile, the company said that its revenue for the quarter rose to RM763.62 million versus RM633.37 million a year earlier.

Earnings per share was 6.34 sen versus 4.61 sen in 2011.

For the financial year ended Oct 31, the company’s posted net profit RM393.82 million versus RM327.97 million a year earlier, on the back of revenue RM2.53 billion compared to RM2.23 billion in 2011.

Reviewing its performance, S P Setia said its property development revenue increased by 23%, while the profit before tax (PBT) increased by 83%.

“The increase in revenue is mainly contributed from higher revenue recognition from residential and commercial properties in the Klang Valley, Johor Bahru and Penang as a result of increased level of overall Group sales achieved since FY2011,” it said.

The company said its PBT increased by a higher percentage mainly due to the increase in PBT margin from 18% to 26% arising from group’s success in steadily increasing the selling prices for its products through continuous value-creation.

S P Setia said ongoing projects which contributed to the profit and revenue achieved 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, Setia Eco Cascadia and Setia Eco Gardens in Johor Bahru and Setia Pearl Island, Setia Vista and Setia Greens in Penang.

On its prospects, S P Setia said that while the market environment was expected to be challenging in 2013 due to continued uncertainties in the global economy, the company was confident that based on the group’s pipeline of ongoing and upcoming projects, that it would be able to sustain its strong growth trajectory.

“Accordingly, the group has set a new sales target of RM5.5 billion to be achieved in FY2013,” it said, adding that barring unforeseen circumstances, it was optimistic that its strong performance would continue in the current financial year.

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