SP Setia ups FY10 sales target

SHAH ALAM: Property developer SP Setia Bhd has increased its sales target to RM2 billion for FY10 from RM1.65 billion previously on the back of strong sales of RM608 million for the first quarter of FY10, said president and CEO Tan Sri Liew Kee Sin.

Speaking to reporters after the company's AGM here on March 3, he said sales sustained despite a 10% increase in property prices across the board due to an increase in the price of building materials.

"We are very confident in achieving this target based on the recovery in the economy," he said. "We think the 6% growth in the economy for this year is achievable."

He said of the RM2 billion sales target, RM100 million was expected to come from sales in Vietnam.  

"We are taking it slow and steady there," he said, adding that SP Setia was not greatly impacted by the further recent devaluation of the dong.

"The land prices are pegged in dong, so if it weakens it's still ok with us," said CFO Teow Leong Seng.

Liew said the company was bullish on sales in Malaysia, adding that SP Setia had 10 active projects with a combined gross development value (GDV) of RM26 billion.