KUALA LUMPUR – S P Setia Berhad (“S P Setia”) is pleased to announce outstanding financial results for FY2024, demonstrating robust financial strength and strategic growth across its operations. S P Setia reported a PBT exceeding RM1 billion and a net profit after tax of RM631 million for FY2024, its highest profit in the past 5 years. This strong performance has allowed it to double its dividend to shareholders, signifying a commitment to delivering value and confidence in its prospects.
S P Setia surpassed its sales target for the financial year that ended on 31 December 2024, achieving a commendable RM5.02 billion in sales against a target of RM4.4 billion, accomplished in a challenging economic environment. Revenue was recorded at RM5.29 billion in FY2024, a 21% increase from last year. Additionally, S P Setia has successfully reduced its borrowings by RM1.6 billion, resulting in a lower net gearing ratio of 0.35x from 0.49x for the period in review, underscoring its effective execution of debt reduction strategies.
The Group’s sales breakdown reveals that local projects contributed RM4.24 billion, accounting for approximately 84% of total sales, while international projects added RM785.0 million. S P Setia’s long-held reputation in townships and residential developments continues to be the Group’s mainstay, contributing consistently to its performance.
In the Central region, S P Setia is leveraging the unique geographical advantage of its two cross-development segments located just 4 km apart: the maturing crown jewel integrated residential township Bandar Setia Alam and Setia Alaman Industrial Park. The dynamic road connectivity and ready infrastructure serving the two developments are key catalysts to the new frontier in S P Setia’s industrial portfolio growth.
Unleashing value in the Southern region, S P Setia continues to drive profitability growth from the strong residential and commercial properties demand in Johor while keeping the momentum on the Group’s industrial expansion plans.
Up North, S P Setia’s flagship Northern township, Setia Fontaines in Bertam, Penang is actively expanding the Group’s industrial footprint by the proposed rezoning of at least 300 acres for industrial development. Given its proximity to the Kulim Hi-tech Park, this strategic move aligns with the increasing demand for industrial land in the Northern region of Peninsular Malaysia, which is expected to bring in positive spillover effects in the neighbouring residential and commercial developments.
Reflecting on operational excellence, S P Setia has noted increased staff productivity and advancements in innovation and transformation processes, reinforcing its position as a forward-thinking and agile organisation.
“Our performance in FY2024 showcases S P Setia’s resilience, strategic foresight, and operational excellence. The doubling of our dividend is a testament to our strong financial standing and commitment to maximising shareholder value. We are excited about the future and the growth opportunities that lie ahead,” said Datuk Choong Kai Wai, President & CEO of S P Setia.
The Group has a robust sales pipeline supported by 42 ongoing projects. Additionally, the Group boasts a remaining land bank of 5,451 acres and an effective remaining Gross Development Value (GDV) of RM128.59 billion.
S P Setia’s international ventures in Vietnam and Australia are on a growth trajectory, and both markets are expected to contribute to overall group performance. Atlas Melbourne, which was recently launched in Q4FY2024, achieved an encouraging take-up rate.
The Group is ready to surge forward with an RM4.8 billion sales target for 2025.
“With the core townships, new industrial developments, regional contributions and formation of REIT, S P Setia is set to deliver sustainable value, profit growth and value to shareholders, and operational excellence across all its endeavours,” Datuk Choong concluded. EN