PETALING JAYA: S P Setia Bhd is set to achieve strong earnings this year despite the challenging market conditions.<\/p>\n
The company, which has set a bullish sales target of RM4.55bil for this year, will be focusing on landed residential projects to grow its earnings, said Macquarie Research in a report.<\/p>\n
TA Securities said overall demand for the group\u2019s landed properties remain resilient, with maiden launches in Setia Safiro Cyberjaya and Setia Mayuri Semenyih fully taken up.<\/p>\n
Credit Suisse said it expects SP Setia\u2019s 2020 profit to improve 11% year-on-year, on the back of more advanced progress billings and also ongoing efforts to monetise unsold inventories.<\/p>\n
The research house is maintaining an \u2018outperform\u2019 call with a target price of RM1.70.<\/p>\n
MIDF Research meanwhile is maining a \u2018buy\u2019call on the stock with an unchanged target price of RM1.86.<\/p>\n
Credit Suisse meanwhile said further monetary easing will be supportive of the property market.<\/p>\n
In spite of the challenging economic climate, S P Setia Bhd achieved total sales of RM4.56bil, to meet its RM4.55bil sales target for 2019.<\/p>\n
This was in spite of global geopolitical issues such as the US-China trade tensions, unrest in Hong Kong as well as tight lending criteria in Malaysia.<\/p>\n
For the year ended Dec 31,2019, the group\u2019s revenue and profit before tax came in at RM3.93bil and RM598mil, respectively.<\/p>\n
Local projects are the biggest contributor to sales, bringing in RM4.01bil or about 88% of sales, while the remaining 12% is fulfilled by international projects such as UNO Melbourne in Australia, Daintree Residence in Singapore and EcoXuan in Vietnam, according to the company.<\/p>\n
On the local front, sales were largely from the central region with RM2.78bil, aided by a RM747mil contribution from the southern region and RM480mil from the northern region.<\/p>\n
For the final quarter of 2019, the group witnessed its strongest period, with a RM1.49bil spike in sales.<\/p>\n
It said this was attributed to eleventh-hour purchases by home buyers to take opportunity of the incentives of the Home Ownership Campaign (HOC).<\/p>\n
A total of RM675mil in sales from the HOC were secured during the fourth quarter.<\/p>\n
For the full-year, total sales brought in by the HOC amounted to RM1.82bil.<\/p>\n
SP Setia said its efforts to clear inventories had also contributed an additional RM637mil.<\/p>\n
MIDF Research said the company\u2019s earnings were within expectations.<\/p>\n
SP Setia\u2019s 2019 core net income of RM306.8mil came in within expectations, meeting 101% and 97% of our and consensus full year estimates respectively.<\/p>\n
\u201cNote that we have excluded mainly disposal gains on former British Embassy Land and foreign exchange losses in our core net income calculations.\u201d<\/p>\n
UBS meanwhile said SP Setia\u2019s core profit after tax and minority interests (Patmi) was in line with its estimates.<\/p>\n
\u201cWe expect launches in the first quarter to be slow before management starts ramping up again in the second quarter. “<\/p>","protected":false},"excerpt":{"rendered":"
PETALING JAYA: S P Setia Bhd is set to achieve strong earnings this year despite the challenging market conditions. The company, which has set a bullish sales target of RM4.55bil for this year, will be focusing on landed residential projects to grow its earnings, said Macquarie Research in a report. TA Securities said overall demand […]<\/p>\n","protected":false},"featured_media":3255,"template":"","news_category":[16],"township-news":[],"venues-news":[],"class_list":["post-3266","news","type-news","status-publish","has-post-thumbnail","hentry","news_category-general"],"acf":[],"_links":{"self":[{"href":"https:\/\/spsetia.com\/zh\/wp-json\/wp\/v2\/news\/3266","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/spsetia.com\/zh\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/spsetia.com\/zh\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/spsetia.com\/zh\/wp-json\/wp\/v2\/media\/3255"}],"wp:attachment":[{"href":"https:\/\/spsetia.com\/zh\/wp-json\/wp\/v2\/media?parent=3266"}],"wp:term":[{"taxonomy":"news_category","embeddable":true,"href":"https:\/\/spsetia.com\/zh\/wp-json\/wp\/v2\/news_category?post=3266"},{"taxonomy":"township-news","embeddable":true,"href":"https:\/\/spsetia.com\/zh\/wp-json\/wp\/v2\/township-news?post=3266"},{"taxonomy":"venues-news","embeddable":true,"href":"https:\/\/spsetia.com\/zh\/wp-json\/wp\/v2\/venues-news?post=3266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}