SP Setia’s third quarter earnings jump 88.88%

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PETALING JAYA: SP Setia Bhd’s net profit for the third quarter ended Sept 30, 2017 jumped 88.88% to RM253.22 million from RM134.07 million a year ago mainly due to contribution from Phase 1 of the Battersea Power Station project.

In a filing with Bursa Malaysia today the group said the project in London contributed an effective share of RM149.2 million in sales. Its other projects in Shah Alam, Semenyih, Cyberjaya, Rawang, Kuala Lumpur, Kota Kinabalu, Johor Baru and Penang also contributed to its profit.

Revenue for the quarter fell 33.33% to RM842.49 million from RM1.26 billion a year ago due to a short-term transitional effect on its overall revenue recognition following a strategic move to reposition launches in the previous financial year in response to market demand.

For the nine months ended Sept 30, 2017, net profit rose 29.09% to RM494.72 million from RM383.24 million a year ago while revenue fell 19.09% to RM2.58 billion from RM3.19 billion a year ago.

SP Setia achieved sales of RM2.82 billion for the nine months, with local projects contributing RM1.66 billion or 59% and international projects contributing RM1.16 billion or 41%.

President and CEO Datuk Khor Chap Jen said although total sales achieved were within expectations, the local market remained subdued and the underlying demand was strong for selective products and locations.

“However, we are pleased to note that the demand in international markets has picked up, demonstrated by the higher current nine months sales, which exceeded last year’s 12 months sales,” he said in a statement today.

SP Setia has unbilled sales of RM7.05 billion, anchored by 31 projects and remaining land bank of 5,384 acres, with a gross development value of RM79.82 billion as at Sept 30, 2017.

SP Setia’s share price closed unchanged at RM3.30 today with a total of 538,100 shares traded, giving it a market capitalisation of RM9.94 billion.


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