KUALA LUMPUR (Dec 8): S P Setia Bhd has set a set a new full-year sales record in FY 2011 of RM3.29 billion, or a 42% increase from the previous record of RM2.31 billion set in FY 2010.
The company has also set a target to achieve total new sales of RM4 billion in FY 2012.
Announcing its financial results on Thursday, S P Setia said its net profit for the fourth quarter ended Oct 31, 2011 rose 9.74% to RM82.47 million from RM75.15 million a year earlier, due mainly to the flow through effect of overall increases in selling prices achieved for new launches since FY 2010 and the general stabilisation in prices of construction materials experienced during the financial year.
It said on Thursday that revenue for the quarter increased 13.5% to RM633.36 million from RM557.99 million in 2010.
Earnings per share was 4.61 sen compared to 4.93 sen a year earlier, while net assets per share was RM1.88.
S P Setia proposed a final gross dividend of nine sen per share in respect of the financial year ended Oct 31.
For the financial year ended Oct 31, S P Setia's net profit rose 30.24% to RM327.97 million from RM251.81 million, on the back of an increase in revenue to RM2.23 billion from RM1.75 billion in 2010.
Reviewing its performance, S P Setia said its profit and revenue were principally derived from its property development activities carried out in the Klang Valley, Johor Bahru and Penang.
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 and Setia Vista in Penang, it said.
Apart from property development, the group's construction and wood-based manufacturing activities also contributed to the earnings achieved, it said.
S P Setia said its sales of RM3.29 billion in FY11 was the fourth consecutive year of increase in its new sales record and the second consecutive year that its total sales had exceeded the RM2 billion mark.
The company said it was confident that it had the capability and capacity to grow the value of its new sales even further despite the anticipated head-winds stemming from the slowdown in the global economy.
"Fundamental determinants of property demand, such as demographics, favourable interest rates, job stability, and a structural decline in housing starts, remain supportive and positive.
"Recent pro-active policies from the central bank and government that seek to further encourage prudence in bank lending should not adversely impact genuine home-owner demand particularly for quality properties," it said.
S P Setia said its existing projects in the Klang Valley, Johor Bahru and Penang would continue to underpin its sales performance in FY 2012.
It said its recently launched KL EcoCity, a new integrated green commercial and mixed residential development, was expected to contribute strongly to the group's sales.
Other recent launches like Fulton Lane and EcoXuan, its maiden project in Melbourne and second project in Vietnam respectively, are expected to help augment sales in FY 2012 which will also benefit from planned new project launches like Setia Eco Cascadia, S P Setia's first upgraders' project in Johor, and Aeropod, the group's maiden project in Sabah, it said.
S P Setia said that coupled with its healthy cash flow and strong financial position, the company hopes to be able to capture increased market share in FY 2012.
"The group also intends to seize opportunities which may arise during uncertain times to acquire more choice assets on favourable terms to further strengthen the group's growth prospects in line with its long-term expansion plans.
"Barring unforeseen external shocks, the board is optimistic that the group's strong performance will continue in FY 2012," it said.
TOP PICKS BY EDGEPROP
(Full loan)22x80sqft -2Sty Tmn Klang Ria 2,Sentosa
Europe Style - Freehold 1 Storey Bungalow Seremban
Seremban, Negeri Sembilan
Build your own semi d / bungalow in ampang
RENOVATED 2 storey FASA 2 Puncak Alam KITCHEN CABI
Bandar Puncak Alam, Selangor
BANGLO SATU TINGKAT, TAMAN SERI RANTAU, RANTAU PAN
2.9 ACRES BUMI LAND, BUKIT KAPAR, KLANG RM2.4M
Almyra Residences @ Bandar Puteri Bangi