S P Setia Bhd achieved a total of RM1.42bil in sales in the first quarter ended March 31, 2024, on track to meeting its sales target of RM4.4bil in 2024.

In a statement, the property developer said the sales contributions were mainly from the southern and central regions in Malaysia.

S P Setia registered a net profit of RM77.33mil in 1QFY24 as compared to RM55.45mil in the same quarter in 2023, representing an earnings per share of 0.56 sen against 0.36 sen.

Revenue during the quarter under review was RM1.48bil, up from RM967.67mil.

S P Setia president and CEO Datuk Choong Kai Wai said the group experienced growth across its domestic and international markets despite the challenging global business environment.

“Our first-quarter results is a testament to the robustness of our business model and the success of our strategic market expansions. We’ve seen growth across the board, and while we’re looking ahead with positivity, we’re conscious of the need to maintain a steady hand on the tiller,” he said.

According to Choong, the group’s property development segment achieved pre-tax profit of RM180.8mil in 1QFY24, a 38.6% increase from the previous corresponding quarter.

This was driven by higher gross profit as the group benefited from higher contribution from its Eco Xuan development project in Vietnam, supported by landbank management and higher contribution from domestic property development.

Choong said the group’s investment properties and hotels also contributed higher profit during the quarter, compared to the loss-making performance in the previous year.

He noted also that project completions, especially within Australia, have been particularly successful due to the group’s diversified approach.

In 1QFY24, the group launched new projects with a combined gross development value of RM146.2mil.

RHB Retail Research said S P Setia Bhd is poised to resume its uptrend after climbing above the 21-day simple moving average (SMA) line, while eyeing a spot above the RM1.50 threshold on Monday.

In a trading stocks note on Tuesday, the research house said if the stock breaches that point, the bullish bias above that level may drive the stock higher towards the RM1.60 resistance, followed by RM1.70.

“However, breaching below the RM1.40 support would reverse the momentum, as it would then be trading below the SMA and forming a ‘lower low’ bearish structure,” it said.

Property developer SP Setia Bhd has launched Nadi 2 at Setia Commerce Square at Setia EcoHill 2 township in Semenyih. Nadi 2, the second phase of the Nadi commercial development, which as a whole comprises 212 shop offices, 12 semi-detached shops, multiple sizes of enterprise lands and petrol station lands.

The launch has followed the momentum of success of the previous phase of Nadi, consisting 86 units of shops and is fully sold.  Nadi 2 offers three types of properties. Its 36 intermediate double-storey terrace shops with built-ups of 3,585 sq ft and land sizes measuring 26 ft by 75 ft each, comes at a tentative price of RM1.49mil onwards.

It also has eight units of three-storey corner shops with built-ups of 8,202 sq ft, land sizes of 42 ft by 75 ft each, and starts at the tentative price of RM3.28mil. Lastly, there are six semi-detached shops with built-ups of 5,422 sq ft and land sizes of 70 ft by 175 ft each, offered at an estimated price of RM3.58mil onwards.

Nadi offers distinctive, wide frontage and open layouts for easy business configuration, targeting businesses from F&B, retail, and the service industry such as restaurants, clinics, mini supermarkets, car showrooms, convenience stores, boutique café and educational centres to support the rapid growth and development of this self-contained township.

Situated at the heart of the 1,010-acre Setia EcoHill 2 township and surrounded by matured townships such as Eco Majestic, Beranang, Pelangi Semenyih 2, Mahkota Hill, Kesuma Lakes, Nadi 2 will form part of the Setia Commerce Square commercial precinct with a neighbouring commercial area, making it one of the largest commercial districts in the region.

Amari SPICE Penang and S P Setia Foundation hosted a group of children at their Warni-warni Aidilfitri Open House 2024.

The corporate social responsibility (CSR) programme brought together underprivileged children from all races who were hosted to an evening of good food, fun and laughter.

A special menu was put out by the hotel’s food & beverage department for the afternoon.

The kids were from SJKT Tasek Permai, SJKC Aik Hua and SK Batu Ferringhi accompanied by their teachers.

Lending support was Ms Suratchaya Palawongse Deputy Consul-General Royal Thai Consulate-General, Penang, Datuk Yuslina Mohd Yunus, Senior Executive Vice President , S P Setia Berhad and Ms Doris Hor,Head of Commercial, Amari SPICE Penang representing general manager Noorazzudin Omar.

Also present were corporate guests and business partners.

“The Festive Discovery programme, is another initiative by S P Setia Foundation in enriching students’ unity and understanding through festivity and cultural immersion.

“We welcome children from multiple ethnicities from orphanages and B40 families.

Our Hari Raya Aidilfitri celebration is a  special occasion to express our gratitude for your overwhelming support. We hope to continue serving you at Amari SPICE Penang,” said Hor in her address.

The kids were treated to some fine food, clown appearance and a ketupat making session.

They also received ‘duit raya’ from the organisers and posed for the camera to treasure the fond memories with their hosts.

Maybank IB introduced S P Setia’s expanded ESG tear sheet and assign an above average overall score of 57 (out of 100). SPSB introduced the Setia Green Roadmap in 2023 to help its transition towards carbon neutrality and net zero by 2050.

The house maintains its earnings forecasts, MYR1.66 TP (0.5x FY24E PBV) and BUY recommendation.

Improvement in “E” data disclosure needed
SPSB’s overall ESG score of 57, under Maybank’s proprietary scoring methodology is above average, which is close to its sector peer, SDPR at 63. SPSB’s score was dragged by the lack of disclosures on carbon emission data (pre-FY23) and energy and water consumption intensity data (in FY23), which make YoY comparison difficult. Additionally, there were two cases concerning work-related incidents leading to Lost Time Injury (LTI) recorded in FY23.

Implementing carbon reduction initiatives
SPSB introduced its Setia Green Roadmap in 2023 to help its transition journey towards a net zero organization by 2050. It aims to reduce Scope 1 and 2 carbon emissions by 45% by 2030 and by 70% by 2040, relative to a 2023 baseline. To reduce emissions across its business units, SPSB has introduced Setia e-GreenLiving, a range of sustainable home features
including smart home system, Green Switch, rainwater harvesting system and readiness for EV and solar power use. SPSB is now finalising the baseline relating to high-rise developments to reduce Scope 3 emissions. These initiatives could improve its ESG scoring going forward.

Undemanding valuation
Maybank IB said it continues to like SPSB for its undemanding valuation. It currently trades at 0.45x FY24E P/B versus industry average of 0.79x. Catalysts include: i) land sale (in FY24E), ii) REIT-ing of its investment properties (FY25-26E)
and iii) potential upward revision in BPS mall pricing (FY27E). As at Dec 2023, SPSB’s net gearing was 0.49x (also see our report dated 22 Mar 2024).

S P Setia Bhd has officially launched the LakePoint Complex commercial hub at the 1,235-acre freehold township of SetiaAlam Impian in Shah Alam on Saturday. The ceremony was officiated by the Sultan of Selangor, Sultan Sharafuddin Idris Shah.

“Since opening its doors to the public in August 2023, we have been receiving encouraging footfall from our target audience as well as [those] in the nearby catchment here in Shah Alam. That is approximately up to 12,000 visitors every month,” said S P Setia chairman Tan Sri Syed Anwar Jamalullail at the ceremony.

Occupying 6.99 acres, LakePoint Complex comprises LakePoint Central (a two-storey retail centre), LakePoint Club (clubhouse) and LakePoint Gallerie (sales gallery and office). The complex is situated next to the 31-acre LakePoint Park.

LakePoint Central has a net lettable area of 28,038 sq ft, of which 83% has been occupied by Urban Marketplace as the anchor tenant; food and beverage (F&B) outlets such as JomPa Cafe, RAWi Authentic Fusion Cuisine, The Gorpis Kafe and Frosted by Sheena; DBC Physiotherapy wellness centre; Adanis hair and beauty salon; RHR Xcluseev fashion boutique; and Universiti Teknologi Mara’s (UiTM) art gallery, Crystal Art Gallery.

LakePoint Club offers members-only clubhouse facilities, including four badminton courts, a futsal court, an Olympic-size infinity swimming pool, a wading pool, a sauna, a dance studio, a games room, a gym that overlooks the LakePoint Park and a grand ballroom that is able to accommodate up to 1,000 people. Club membership is open to the public.

Setia AlamImpian was launched in November 2006 as Alam Impian by I&P Group Sdn Bhd. The township was renamed Setia AlamImpian following the merger between S P Setia and I&P Group in 2017.

With a gross development value of RM8.2 billion, the township consists of seven art-themed precincts, namely Performing Arts, Fine Arts, Musical Arts, Digital Arts, Cinematic Arts, Industrial Arts and Minimalist Arts.

According to S P Setia, there are plans to launch semi-detached and bungalow units within the Cinematic Arts precinct in the fourth quarter of this year and in 2025 respectively, and details are still being finalised.

Upon the township’s expected completion in 2036, the entire township will have a population of over 80,000 residents with 20,000 residential units.

S P Setia Bhd has collaborated with Faz Food Catering this Ramadhan month to offer a buffet spread with a nostalgic twist.

Presenting more than 100 delicacies, the “Kenangan” buffet at Setia City Convention Centre (SCCC) is set to entice customers with wonderful flavours of the Malay cuisine.

The buffet derived its theme from the legendary Tan Sri P Ramlee’s roles in his iconic songs and films, whereby these elements were evident in the decorations and names of the stalls at the buffet.

Among the stalls available are Roti 3 Abdul, which serves the staple bazaar Ramadhan snack – Roti John, as well as Kopi O’ Nujum Pak Belalang.

Faz Food Catering founder Mohd Fazren Mohd Rafi said the team thought of adopting the theme following the end of royalty payment for the usage of the artist’s work.

“The crowd has not picked up yet because the start of Ramadhan also coincided with the new school term. We expect more customers in the coming weeks,” he told reporters at the media preview of the buffet.

Mohd Fazren said the menu selection was strictly Malay cuisine because the team wanted its customers to reminisce about the days of eating at their hometowns or kampung.

“We know other buffet at hotels include a wide variety of cuisines such as Western and Japanese. We want to focus on just Malay cuisine because we know many people miss certain dishes such as masak lemak cili api or just a simple telur goreng kicap.

“I had a customer personally thank me for serving masak lemak ikan talang because he last had that dish 20 years ago. That is the experience I want for my customers,” he added.

Other Malay dishes available at the buffet are rebung masak asam pedas, daging berlada, paru sambal, along with an assortment of desserts and scrumptious traditional kuih.

Among other attractions at the venue are the Pawagam P Ramlee entrance and the Bilik Seniman Bujang Lapok photo area.

Situated in the township of Setia Alam, SCCC comprises a variety of indoor and outdoor venues, with good accessibility to nearby amenities.

The green building index-certified venue has hosted multiple events such as corporate banquets, weddings, product launches and outdoor events since it opened its doors in November 2012.

The Kenangan buffet is available from March 14 to April 5. Tickets are available for RM118 per pax for adults and RM75 per pax for senior citizens and children.

S P Setia Bhd launches the final phase of its Irama Villa series in Bandar Kinrara, Puchong. Irama Villa IV comprises 38 double-storey terrace homes, targeting couples, young families and upgraders.

“We are confident that the 38 units will be well-received and taken up swiftly, especially among our affluent target market of families, upgraders in the catchment areas of Puchong who recognise our signature products and their steady values. There is a demand for larger floor plans and column-less porches and layouts, particularly ones with sleek, contemporary designs,” S P Setia divisional general manager Razly Mohammad Rus said.

Priced from RM1.7mil to RM3.05mil, Irama Villa IV has a build-up from 2,414 sq ft to 2,927 sq ft with four to five bedrooms.

Irama Villa IV has been designed with features such as a smart lock for enhanced security, a solar photovoltaic conduit for clean energy and electric vehicle (EV) ports. Under the Setia eGreenLiving concept, units have a Box 366 food and parcel delivery dropbox.

The development is part of the 1,904-acre Bandar Kinrara township, which launched  Anggun Villa in December 2023. Previous parcels such as Legasi 4, Anggun 3, Theara, Theara 2, Irama Villa I, Irama Villa II and Irama Villa III have been fully sold.

The township has access to the Kinrara Bk5 light rail transit (LRT) station, the Shah Alam Expressway, the Maju Expressway, the New Pantai Expressway, Lebuhraya Damansara-Puchong and Middle Ring Road 2.

Irama Villa IV is due for completion in 2026 and has an RM74.1mil gross development value.

S P Setia Bhd has achieved an 85% take-up rate for Irama Villa IV, since its official launch on March 3. Irama Villa IV is the final lineup of the Irama Villa series in the 1,904-acre Bandar Kinrara township in Puchong.

According to a press release dated March 1, Irama Villa IV has a gross development value of RM74.1 million. Occupying 5.53 acres of freehold land, it will consist of 38 units of two-storey terraced homes with built-ups ranging from 2,414 to 2,927 sq ft. The selling price starts from RM1.7 million to RM3.05 million. It is due for completion in 2026.

S P Setia divisional general manager Razly Mohammad Rus said: “We are confident that the 38 units will be well-received and taken up swiftly, especially among our affluent target market of families, upgraders in the catchment areas of Puchong who recognise our signature products, and their steady values.”

“There is a demand for larger floor plans and column-less porches and layouts, particularly ones with sleek, contemporary designs,” Razly added.

Irama Villa IV is targeted to couples, young families and upgraders.

Under Setia eGreenLiving concept, Irama Villa IV will come with sustainable amenities such as Box 366 food and parcel delivery dropbox, smart lock for enhanced security, a solar photovoltaic conduit for clean energy and electric vehicle (EV) ports.

Situated within the Bandar Kinrara township, Irama Villa IV benefits from the township’s accessibility to major highways such as the Shah Alam Expressway, Maju Expressway, New Pantai Expressway, Lebuhraya Damansara-Puchong and the Middle Ring Road 2.

S P Setia Bhd has reported a 71.12% jump in its fourth quarter net profit to RM148.24 million from RM86.63 million a year earlier, helped by higher sales of its properties.

Revenue for the quarter ended Dec 31, 2023 (4QFY2023) fell 18.98% year-on-year to RM1.38 billion from RM1.71 billion, which the group attributed to lower revenue from the property development segment following the completion of the group’s Daintree Residence in Singapore in the previous year.

However, this was mitigated by higher contributions from the group’s Australian market due to the handover of UNO Melbourne units and higher domestic property development revenue, the group said in a bourse filing on Thursday.