Friday 29 Mar 2024
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KUALA LUMPUR (June 15): SP Setia Bhd’s net profit for the second quarter ended April 30, 2015 (2QFY15) jumped 206% to RM227.2 million or 8.94 sen a share, from RM74.27 million or 3.02 sen a share a year ago, on increased revenue and profit recognition from the handover of the group’s first residential tower in Fulton Lane, Melbourne.

Revenue for the quarter came in at RM1.63 billion, up 71.16% from RM952.35 million a year ago.

The group has also recommended an interim single-tier dividend of 4 sen per share in respect of FY15 — consistent with prior year’s payout — and that a dividend reinvestment plan will apply to this interim dividend, said SP Setia in a press release today.

“With higher revenue and profit recognised from the development of its strong sales pipeline built to date and timely staged handovers of Fulton Lane, its property development division achieved 47% higher revenue and 57% higher PBT for the current period to-date. The group is also expected to handover the second residential tower in Fulton Lane in the second half of the financial year,” the release read.

Meanwhile, according to its filing to Bursa Malaysia, SP Setia’s cumulative six months’s net profit was at RM328.51 million or 12.93 sen a share, up 92.05% from RM171.05 million or 6.96 sen a share in 6MFY14.  

Revenue was 52.69% higher at RM2.556 billion, from RM1.674 billion in 6MFY14.  

The group achieved RM774 million sales in 2QFY15; as at May 31, 2015, total group sales for the first seven months of FY15 stood at RM2 billion, the press release noted.

“While sales from the Malaysian projects registered an improvement in the second quarter, its international projects posted weaker sales largely due to the uncertainty surrounding the United Kingdom housing market prior to the general election having an impact on sales in Battersea Power Station,” the same release said.

On the local front, the group continues to face challenges such as tighter lending from banks as a result of the property cooling measures introduced by Bank Negara Malaysia and weak buyer sentiment. Therefore, the group’s sales target for FY15 has been revised from RM4.6 billion to RM4.0 billion, it added.

SP Setia's acting president and CEO Datuk Khor Chap Jen said the group's sales performed satisfactorily, despite current challenging market.  

"We have also adapted our product launches to mid-priced range products, particularly in Klang Valley, and the strategy is proving fruitful as project launches in Setia Alam, Setia EcoHill and Setia Eco Glades continue to be major contributor to sales, due to its strategic locations and good infrastructure," Khor said.  

Khor expects SP Setia to continue witnessing strong demand for its projects in the current financial year.

The group’s board also resolved that the company’s financial year end be changed from Oct 31 to Dec 31, the release further read.

SP Setia (fundamental: 1.4; valuation: 1.4)’s counter closed up 5 sen or 1.5% at RM3.38 today, for a market value of RM8.75 billion.

(Notes: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations)

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