S P Setia achieved commendable sales of RM1.03 billion for the first quarter ended 31 March 2023. Revenue stands at RM968.0 million with a corresponding Profit Before Tax of RM116.0 million.
Local projects contributed RM903.0 million or approximately 87% of sales while the international projects contributed RM130.0 million or approximately 13% of sales. On the local front, the sales secured were largely from Central region with RM546.0 million whereas Southern region contributed RM285.0 million.
Completed inventories worth of RM107 million were cleared during this quarter. The Group secured total bookings of RM512.0 million as at 31 March 2023 and remains steadfast on the swift conversion of these bookings into sales.
In FY2023, S P Setia plans to launch RM4.89 billion worth of local properties. Overall, launches will be concentrated in the Central region with a Gross Development Value (GDV) of RM3.83 billion. This includes new projects from the Group’s established developments such as Bandar Setia Alam, Setia Ecohill 1 & 2, Setia Eco Templer, Bandar Kinrara and Setia Eco Park as well as rebranded projects of Setia Alamsari (North and South), Setia AlamImpian and Setia Bayuemas.
For the Johor region, launches of RM403.0 million will be rolled out largely from Setia Tropika, Taman Pelangi Indah, Setia Eco Gardens and Setia Eco Cascadia. As for Northern region, planned launches worth RM575.0 million are mainly coming from Setia Fontaines in Bertam and Setia Miracca,a new development planned in Penang Island.
For Q1FY2023, the Group had launched a total GDV of RM683.0 million landed properties comprising mostly of double storey terrace and/or semi-detached homes whereby the take up rate in well sought after and mature township such as Bandar Kinrara was fully sold out. Other successful launched projects were also observed in townships such as Setia Eco Templer, Setia AlamImpian and Setia Eco Gardens during this period.
The recent Overnight Policy Rate hike by Bank Negara Malaysia to help counter inflationary pressures may add burden to new homebuyers.
“Cognisant of the various measures announced and implemented by authorities, we are prioritising on creating sustainable community developments by taking cue of the current market demand and buyer’s affordability levels. We continue to emphasise on offering new planned launches that meet the buyers’ demand. The Group has diversified into hospitality and industrial property sectors and is slated to further expand our presence in Australia and Vietnam given the strong growth potential prevalent in these markets ”, Datuk Choong added.
“With the commendable sales achieved for the first quarter, we are optimistic that we will achieve the sales target of RM4.2 billion set for FY2023”, he continued.
Underpinned by an unbilled sales pipeline of RM7.17 billion, 45 ongoing projects and an effective remaining land banks of 7,459 acres with a GDV of RM128.02 billion as at 31 March 2023, the Group’s performance is expected to remain resilient amidst prevailing market conditions and challenges.
