S P Setia Passes Sales Target Of RM4 Billion In FY2022

S P Setia achieved another milestone by achieving RM4.11 billion in sales in FY2022, exceeding its target by RM110 million. The solid sales achievement translates into a revenue of RM4.45 billion and a commendable profit before tax of RM564.1 million.

The Group declared a final dividend of 1.47 sen per share and preferential dividends of 6.49% and 5.43% for its Islamic Redeemable Convertible Preference Shares A and C respectively for the financial period.

Local projects contributed RM3.58 billion or approximately 87% of sales, while international projects contributed RM525.0 million or about 13% of sales. On the local front, the sales secured were mainly from the Central region with RM2.54 billion. Southern region contributed RM615.0 million while the Northern and Eastern regions contributed RM322.0 million. As for the international projects, Battersea Power Station outperformed with sales of RM424.0 million, while Australia contributed another RM43.0 million.

“We are pleased with these sales as it demonstrated the resilience and versatility of Team Setia in navigating against various headwinds in a global subdued property market. The total sales secured were partly complemented by the concerted effort of clearing completed inventories amounting to RM622.0 million in sales value. As of 31 December 2022, the Group secured additional sales in pipeline of RM385.0 million,” said Datuk Choong Kai Wai, President & Chief Executive Officer of S P Setia Berhad.

S P Setia celebrated another major achievement through its investment in the Battersea Power Station (“BPS”) project with the successful official opening of the iconic power station building, graced by His Majesty the Yang Di Pertuan Agong, in October 2022. All the residential properties under Phase 2 and

Phase 3A were completed in 2022 and handed over progressively. The hotel, also completed during this financial year, has been successfully monetised and had its soft opening in December 2022.

Domestically, in Q4FY2022, the total Gross Development Value (“GDV”) launches were circa RM1.36 billion, mostly concentrated in the Central region. Projects from matured townships such as Setia Eco Park, Bandar Kinrara and Bandar Setia Alam launched were entirely sold out.

The Group’s maiden commercial property launch in Setia Alamsari received a noteworthy response with an 80% take-up rate.

Setia Fontaines

“We are confident that the Group sales momentum will continue into the financial year ending 31 December 2023, albeit facing global economic uncertainties anticipated during the year. Our planned launches will focus on high-demand-driven products such as landed homes in established and renowned locations in Setia Ecohill 2, Setia Mayuri, Setia Tropika, Setia Alamsari, Setia Fontaines, Setia Alam Impian, Bandar Kinrara, Setia Eco Templer, Setia Warisan Tropika and Setia Eco Gardens,” continued Choong.

The bright spots to the property sector are the sustained demand for landed residential homes, the easing of foreign labour shortage for Malaysia and the reopening of Singapore and China’s borders. These factors augur well for the Group earnings recognition.

S P Setia has set a sales target of RM4.20 billion for FY2023, representing a growth rate of 5% as compared to the preceding year. Underpinned by unbilled sales of RM7.30 billion, 47 ongoing projects and effective remaining land banks of 6,569 acres with a Gross Development Value of RM121.02 billion as of 31 December 2022, the Group is expected to perform resiliently against prevailing market challenges.

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