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S P Setia Berhad: Sales achievement hits 89% of RM3.80 billion target set for FY2021


Datuk Choong Kai Wai, S P Setia President & CEO

23 NOVEMBER, KUALA LUMPUR – S P Setia Berhad (“Group”) recorded a commendable sales performance of RM3.38 billion for its third quarter of FY2021 ended 30 September 2021. Local projects contributed RM2.66 billion whilst the remaining RM728 million were contributed by international projects, namely Sapphire by the Gardens and Marque Residences in Australia as well as Daintree Residence in Singapore. It is significant to note that Daintree Residence is 100% sold.

The Group achieved a revenue of RM2.73 billion and Profit Before Tax (“PBT”) of RM353.7 million in the three quarters under review. Both revenue and PBT for the first nine months of the year are appreciably higher than the corresponding period in the preceding year, mainly driven by progressive revenue recognition from the strong take-up rates achieved.

“We are encouraged by the sales achieved by the Group for the first three quarters of the year despite the uncertainties in the outlook brought about by the Covid-19 pandemic. This would not have been possible if Team Setia is not committed and united in pursuing the sales target set,” said Datuk Choong Kai Wai, President & CEO of S P Setia Berhad Group.

The steady sales of completed stocks, which form part of the RM3.38 billion sales achieved, was RM585 million, higher than that achieved for the same period last year of RM462 million, a commendable achievement despite the market challenges.

In terms of launches, the Group had launched projects totalling RM1.50 billion of Gross Development Value (GDV), mainly comprising landed terrace houses and semi-detached homes in the first nine months of FY2021. Notable launches are planned in existing townships in Setia Alam, Setia EcoHill, Setia EcoHill 2, Setia Alamsari, Setia Bayuemas, Bandar Kinrara and Setia Eco Park in the Central region, Taman Industri Jaya and Bukit Indah in the Southern region, Setia Greens and Setia Fontaines in Northern region and Eco Lakes in Vietnam.

On the international front, the Group’s 40% owned project in London, Battersea Power Station (BPS) witnessed another milestone with the official opening of its on-site underground train station as part of the Northern Line Extension in London. The launch of the Northern Line Extension (NLE) marks the first major extension, designated in Zone 1, to the London Underground Network in this century and has become one of the single most significant milestones to date in the regeneration of BPS. Opened on 20 September 2021, this riverside place-making destination will be one of the most well-connected destinations in the capital.

“We are also progressing well in our digitalisation journey for the Group. It is encouraging to see the digitalisation initiatives deployed on various platforms had generated quality leads and effectively facilitated the conversion of bookings to sales successfully. We will continue to make use of the digital platforms and create a more robust digital workplace to improve the effectiveness and efficiencies of the daily operation underpinned by cyber resilience,” Datuk Choong continued.

The Government’s support for the sector in the recent budget namely the extension of the Home Ownership Campaign to 31 December 2021, low-interest rates to help spur homeownership, Housing Credit Guarantee Scheme to assist small businesses, coupled with the reduction in Real Property Gains Tax rate from 5% to 0%, for property disposed from the 6th year onwards are expected to drive buying interest.

“We are confident in achieving the sales target for FY2021 while remaining steadfast in our de-gearing initiatives to pare down borrowings and optimising our capital structure to strengthen our platform in pursuit of sustainable growth. We are optimising the use of our landbanks to accelerate strategic development while ensuring alignment to the Group’s Environment, Social and Governance agenda as a responsible developer in building a sustainable community for all,” he concluded.

As of 30 September 2021, the Group has 48 ongoing projects, with effective remaining land banks of 7,334 acres valued at a Gross Development Value of RM124.6 billion and total unbilled sales of RM9.84 billion.

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