S P Setia Foundation, the charity arm of S P Setia Bhd, held its Sincerely, Setia Special Celebration World Environment Day 2024 recently at Setia EcoHill with students from Setia-adopted schools.

Up to 60 students from Sekolah Kebangsaan Semenyih, Sekolah Jenis Kebangsaan (Cina) Kampung Baru Semenyih, Sekolah Kebangsaan Bukit Tampoi and Sekolah Jenis Kebangsaan (Tamil) Ladang Rinching attended the fun and educational event.

“Since 2000, we are constantly looking for ways to reinvent our sustainable and social responsibility, and to drive positive change, and through this event – with our collaboration with the stakeholders — we hope the students have gain an enlightening educational session in sustainability,” said Setia Foundation’s management committee and Setia’s senior executive vice president Datuk Yuslina Mohd Yunus at the event.

Setia Foundation’s management committee and Setia’s GM of group brand marketing and communications Adelene Wong said: “We have championed our initiatives to align with the United Nations Sustainable Development Goals (UNSDGs), guided by our Trust Deeds. This is an important platform for us to further spearhead our sustainability efforts, especially for adopted school students under our Setia Caring School Programme.”

“We are grateful that this event is supported and sponsored by our valued sponsors to enhance the students’ overall experience, and to impart immeasurable lessons in sustainability,” she added.

Activities for the day were organised by Me Books, a children’s book publisher, with support from ACE Education Group. Ivan Se Hoo Kien Weng, principal of Dwi Emas International School under the ACE Education Group, together with a few teachers led the breakout group in the activities which included water densities and eco-painting, filtration experiments, a storytelling session, creation of posters and canvas momentos, with plenty of goodie bag giveaways.

S P Setia Bhd has completed the sale of its 388.38 hectare land parcel in Tebrau, Johor to Senibong Island Sdn Bhd for RM564 million.

The transaction was conducted through its subsidiary, Pelangi Sdn Bhd.

S P Setia had tried to sell the land twice before to Scientex Bhd, the deals however were blocked by the Economic Planning Unit.

S P Setia said by unlocking the value of this asset, the company said the deal enhanced its financial standing, contributing to an expected profit after tax of RM332 million.

President and chief executive officer Datuk Choong Kai Wai said the transaction complemented the company’s de-gearing efforts, which are happening according to plan and shall contribute to its future growth.

“By efficiently managing our capital structure, channelling resources into fast-developing projects, rationalising our cost structure, and directly boosting our bottom line, Setia is better positioned for expansion and long-term sustainability,” he said in a statement.

In tandem with this, Setia continued to direct its efforts into other revenue streams via landbank management, making its mark in industrial development and continuing with regional expansion in Vietnam and Australia to broaden its income base.

Setia has also commenced pre-initial public offering preparatory work to explore the establishment of a Real Estate Investment Trust (REIT).

“Our strategy to realise the values of our identified land assets has brought us one step closer to an even stronger financial state and supports our efforts to diversify our income base.

“We remain committed to our ethos of excellence and innovation, driving growth while delivering superior value to our stakeholders,” added Choong.

S P Setia Bhd has been presented the Heritage Award of the FIABCI World Prix D’Excellence Awards 2024 in Singapore on May 30 for Battersea Power Station.

S P Setia was part of the Malaysian consortium along with Sime Darby Property Bhd, Employees Provident Fund and Permodalan Nasional Bhd that gave new life to the London landmark.

“We are really honoured to receive this recognition for breathing new life into this iconic London landmark. It is all about how we have managed to preserve its history, façade and old charm while bringing in newness in our offerings, retail mix in the development. This award drives us to continue to push our boundaries in the foreign market,” said S P Setia CEO and president Datuk Choong Kai Wai.

The group also received certificates from the Ministry of Housing and Local Government (KPKT) at their awards excellence ceremony to celebrate the gold award winners of the FIABCI World Prix D’Excellence Awards 2024 in Putrajaya on June 7.

S P Setia chief operating officer Datuk Zaini Yusoff, who was present at the ceremony, said the recognition of the gold awards by KPKT encompassed the company’s previous wins from their developments.

To date, S P Setia holds the world record for the highest number of gold award wins across the globe, with a total of 17 FIABCI World Gold Prix d’Excellence Awards.

Poised to be London’s next bustling hub and destination, the fresh Battersea Power Station has a gross development value (GDV) of an estimated £9 billion (RM52 billion) and was purchased by its current shareholders in 2012.

It comprises 42 acres of prime land and real estate in London, which includes a 3.5 million sq ft of mixed use commercial space, 4,000 residences and hotel, the 164-room art’otel London Battersea Power Station.

“The regeneration development is a testament to Setia’s (and its respective shareholders’) dedication in championing sustainability. Its values resonate with Setia’s commitment to environmental and social responsibility, which are parallel with the group’s vision to be one of the leaders in creating sustainable communities,” stated the developer in a media release.

SHAH ALAM (May 30): S P Setia Bhd (KL:SPSETIA) on Thursday announced a partnership with China’s Ant Digital Technologies and JaGaSolution to establish a smart community app — Setia Go, to enhance property management quality and improve community engagement for its homebuyers.

S P Setia has collaborated with Singapore-based tech consultant StartupX to introduce its first cohort of startups on the app: Kiddocare (on-demand childcare platform); SOLS Energy (home solar programme); Oyen Insurance (pet insurance); Handibee (home warranty programme); BlueDuck (rental solutions); and GrabMaid (on-demand maid service).

Comprising various startups, the Setia Go app aims to redefine property management and improve community engagement, while offering a seamless and integrated experience for Setia homebuyers.

In his opening address, S P Setia president and CEO Datuk Choong Kai Wai said: “Setia Go illustrates our commitment in the National Technology and Innovation Sandbox initiative by Mosti (Ministry of Science, Technology and Innovation). And it’s part of our bid to champion emerging technologies and services across our platforms. I’m confident our partnership with Ant Digital Technologies and JaGaSolution will open more doors for stakeholders to collaborate in the future and introduce the latest innovations.”

Meanwhile, Ant Digital Technologies general manager of international business Derrick Loi told the press that the Setia Go app is also about establishing trust when businesses and consumers connect in a digital domain hence, the company has upgraded the app to create a seamless experience by having the right mix of partners for a curated user experience.

Loi also revealed that the next phases of app development will focus on integrating green and sustainable energy capabilities.

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.