S P Setia Bhd shares came under heavy selling pressure in afternoon trade, falling as much as 8.96% to RM0.965 as investors reacted to a softer earnings outlook and recent analyst downgrades despite ongoing property sales activity.
The counter opened at RM1.05 before easing steadily to an intraday low of RM0.94, with the stock last traded at RM0.965 as market participants weighed concerns over weakening profit momentum and reduced land sale contributions flagged by research houses.
Trading volume was active at more than 275 million shares, reflecting heightened interest following recent earnings releases and revised sector views from analysts.
The decline came after S P Setia reported first quarter FY2026 net profit of RM58 million, lower due to fewer land sale transactions and unrealised foreign exchange losses, even as revenue improved to RM826 million.
Analysts said earnings momentum was under pressure, with MBSB Investment Bank Bhd downgrading the stock to NEUTRAL while CIMB Investment Bank Bhd cut its rating to HOLD, citing weaker margins, rising costs and reduced land monetisation.
Both research houses highlighted that the softer performance was compounded by a high base in the previous quarter, which included large one-off land sale contributions, resulting in a sharp sequential earnings decline.
Despite the cautious outlook, the group recorded secured sales of RM555 million in the quarter, supported mainly by domestic developments, while management continues to target RM4.6 billion in full-year sales driven by upcoming launches and overseas projects.
Analysts noted that unbilled sales of about RM4.2 billion provide some earnings visibility, although near-term performance is expected to remain dependent on land sales cycles and execution of larger development projects.
