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S P Setia YTD Q2 2024 Net Profit After Tax increased to RM404M and further debt reduction of RM700M

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“We are optimistic on our operations and financial outlook for the rest of the financial year. This performance underscores our strategic focus on the Malaysian market, particularly in the Southern and Central regions,” Datuk Choong Kai Wai, President & CEO of S P Setia Berhad said.

Kuala Lumpur – S P Setia Berhad (“Setia” or “Group”) announced for the six months ended 30 June 2024, the Group’s total net profit after tax reached RM404 million, an increase from last year’s profit of RM121 million, as it gained RM361 million profit from strategic monetisation of its landbanks in Taman Pelangi Indah 2, Johor and Glengowrie, Semenyih. The completion of these land deals marks a strong financial milestone for the Group.

In Q2 2024, the Group concluded the disposal of its 50% equity stake in Retro Highland Sdn Bhd to MMC Land Sdn Bhd pertaining to Taman Ikan Emas, Cheras redevelopment project under the Public-Private Strategic Partnership with Dewan Bandaraya Kuala Lumpur. The settlement was via a full cash consideration, that resulted in a RM56 million profit for the Group during the period.

Total land and development sales achieved for YTD Q2 2024 was RM2.30 billion, surpassing more than 50% the Group’s FY2024 target of RM4.4 billion. Local projects contributed approximately 96% of the Group’s development sales, with the Central region dominating the development sales (60%) mainly from Setia Alaman industrial park’s contribution. In Johor, the Southern region’s robust sale performance accounts for approximately 35% of the Group’s development sales, with further growth potential expected from the RTS Link infrastructure development and Special Economic Zone (SEZ) establishment towards the later part of the year.

“We are optimistic on our operations and financial outlook for the rest of the financial year. This performance underscores our strategic focus on the Malaysian market, particularly in the Southern and Central regions,” Datuk Choong Kai Wai, President & CEO of S P Setia Berhad said.

Leveraging on the rising market demand for industrial development, “We continue exploring feasible investment opportunities and potential strategic partnerships for our lands currently earmarked for industrial park development particularly in Setia Alaman and the Southern Region,” said Datuk Choong. The Group is poised to unveil major projects such as the first phase of Setia Federal Hill in Jalan Bangsar, Kuala Lumpur with an estimated GDV of RM1.4 billion.

Reflecting on the Group’s financial health and prospects, Datuk Choong stated, “Our strategic portfolio management and project launches are setting a strong foundation for sustainable growth. We have demonstrated consistency of crucial financial improvements in the past few quarters, we shall ramp up our efforts to capitalise on market opportunities and deliver more value to our shareholders in the long run.”

In conjunction with S P Setia’s 50th anniversary in 2024, a series of high-energy sales and marketing campaigns and customers engagement programs have been launched and set to be rolled out throughout the year, run in collaboration with the Group’s various strategic partners. These efforts are expected to strengthen the Group’s refreshed brand positioning and boost sales.

The Group’s refreshed brand narrative, “Shaping Spaces That Shape Us All,” reflects its dedication to not just building structures but continue to shaping and inspiring communities/individuals to thrive in every aspect of life — live, learn, work, and play.

To mark the occasion, a mega event at Setia City Oval Lawn in its crown jewel township, Setia Alam in Shah Alam was held, where more than 5,000 guests attended the event featuring Dato’ Awie and Ella, Malaysia’s King of Rock and Rockqueen.

Guests were treated to an array of activities anchored on its refreshed brand theme of “Shaping Spaces that Shape Us All”.

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