S P Setia sales hit 89% of FY21 target

KUALA LUMPUR: S P Setia Bhd registered a commendable sales performance of RM3.38bil for the period ended Sept 30, 2021, despite the uncertainties brought about by the Covid-19 pandemic.

Local projects contributed RM2.66bil to the overall sales while the remaining RM728mil was contributed by international projects, namely Sapphire by the Gardens and Marque Residences in Australia as well as Daintree Residence in Singapore.

On a nine months basis, the group posted revenue of RM2.73bil and pre-tax profit of RM353.7mil, which were appreciably higher than in the corresponding period in the preceding year, mainly due to progressive revenue recognition from the strong take-up rates achieved.

Having achieved 89% of the RM3.8bil sales target for FY21, SP Setia president and CEO Datuk Choong Kai Wai said he is encouraged by the sales figures.

"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," he said in a Tuesday statement.

Of the total sales, the group's sales of completed stocks came to RM585mil, an improvement over RM462mil achieved in the same period in 2020, which was a notable achievement given the challenging backdrop.

Meanwhile, the group said it had launched projects with a total gross development value of RM1.5bil 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.

According to Choong, the group is progressing well in its digitalisation journey with initiatives deployed on various platforms generating quality leads and facilitating the conversion of bookings to sales.

"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," he added.

The group is also optimistic over the government's support for the sector in the recent budget.

It said 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 sixth year onwards are expected to drive buying interest.

As of 30 September 2021, the group has 48 ongoing projects, with effective remaining land banks of 7,334 acres valued at a GDV of RM124.6bil and total unbilled sales of RM9.84bil.

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