KUALA LUMPUR: SP Setia Bhd’s net profit dropped to RM300.48 million for the nine months ended September 30 2019, from RM569.41 million net profit a year ago.
Group revenue, however, edged up to RM3.13 billion from RM2.57 billion previously.
For the third quarter, SP Setia’s net profit jumped 67.1 per cent to RM108.93 million from RM65.19 million a year earlier, on the back of higher property development revenue.
Revenue for the quarter declined to RM932.07 million from RM993 million previously as it had last year completed and handed over its Australian project Maison Carnegie, of which the revenue and profits were recognised on completion basis.
SP Setia, in its filing to Bursa Malaysia today, said it had secured sales of RM3.07 billion during the nine months.
Local projects contributed RM2.60 billion, or 85 per cent of the total sales while international projects contributed RM467.0 million.
“In Malaysia, sales secured were largely from entral region with RM1.75 billion while the southern and northern regions combined, contributed RM854.0 million. Of the RM2.60 billion sales achieved locally, RM1.17 billion were derived from the Home Ownership Campaign (HOC).
“As for the international projects, UNO Melbourne in Australia, Daintree Residence in Singapore and Eco Xuan in Vietnam contributed RM435.0 million of sales,” it said.
SP Setia president and chief executive officer president and chief executive officer Datuk Khor Jap Jen said the group had been strategic with its project launches where projects with combined gross development value (GDV) of RM2.71 billion were launched.
“Amid the challenging landscape of a subdued property market, the strategy is to launch more mid-range landed properties in the group’s flagship townships where the underlying demands by owner-occupiers are still favourable,” said Khor.
SP Setia plans to launch projects with RM2.17 billion GDV for the remaining months of its current financial year. This will bring the total launches for the year to RM4.88 billion.
It will continue to focus on launching landed properties in the established townships of Klang Valley and Johor Bahru.
“Given the versatility of the planned launches, the encouraging response to the HOC and initiatives introduced to promote homeownership, the group remains positive and will work towards achieving the sales target of RM4.55 billion.
“Anchored by 46 ongoing projects with 8,984 acres of effective land banks remaining and potential GDV of RM143.82 billion, our prospects going forward remain positive with total unbilled sales of RM10.52 billion as at September 30 2019,” SP Setia said.