S P Setia: Outlook for 2022 promising

PETALING JAYA: S P Setia Bhd is upbeat about the outlook of the property market for 2022, which is already on a positive momentum as the Malaysian economy continues to recover.

In the group’s latest annual report, chairman Tan Sri Syed Anwar Jamalullail said the company is well poised to ride on this positive momentum, backed by its portfolio of quality projects, sound operating fundamentals and strategic planning.

“The outlook for 2022 appears promising, with the vaccination rate for Malaysia’s adult population nearing 100%, coupled with the full reopening of the country’s economy and international borders.

“In February, we announced our first venture into healthcare, which is a rapidly growing business, after signing an agreement with Qualitas Medical Group Sdn Bhd to develop and operate an ambulatory care centre in Setia Alam, Shah Alam,” he pointed out.

Syed Anwar said thie new business would complement S P Setia’s strength and help diversify the group’s income.

“Looking forward, we will continue to focus on aligning our strategies to the evolving trends in the industry. Our priority is to deliver greater value to all our stakeholders.

“Nevertheless, we remain vigilant on the risks posed by rising raw material costs and possible negative implications from the Ukraine-Russia war,” he said.

S P Setia achieved a record year in terms of sales of RM4.26bil in its financial year ended Dec 31, 2021 (FY21), outperforming its target of RM3.80bil and making the group the top property developer in the country in terms of sales.

“The solid sales achievement translated into revenue of RM3.76bil, which is a year-on-year growth of 17% and a commendable pre-Covid-19 level pre-tax profit of RM542.5mil,” S P Setia said in a statement on its FY21 results.

Its fourth quarter ended Dec 31, 2021 saw the group more than doubling its year-on-year net profit to RM123.3mil on revenue of RM1.03bil.

In conjunction with its results, the group declared a final dividend of 0.65 sen per share as well as preferential dividends of 6.49% and 5.93% per annum, respectively, for its Islamic redeemable convertible preference shares A and B for the financial period.

Moving into FY22, S P Setia said it anticipates a better economic environment in Malaysia, with growth supported by improvements in global trade, strong commodity prices and an increase in private-sector expenditure.

“Although headline inflation is expected to increase, the improvement in overall income, employment conditions and consumer sentiment are expected to lift consumer spending.

“This bodes well not only for the property sector, but the group stands to benefit as well.”

S P Setia has set a sales target of RM4bil for FY22, including RM3.6bil in domestic and RM400mil in overseas projects.

Internationally, its new launches would be coming from Vietnam as the group’s properties in Singapore and Australia have already sold out. It is also exploring additional land bank in Australia.

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