S P Setia achieves RM2.7b worth of sales for 1H2021, on track to achieve 2021 target of RM3.8b

PETALING JAYA (Aug 18): S P Setia Bhd has recorded RM2.71 billion worth of sales for the first half of the financial year (FY) 2021 ending June 30, 2021.

According to the developer in a media statement today, local projects contributed RM2.074 billion or about 77% of the sales, while the remaining 23% or RM639 million were from international projects mainly from its Daintree Residence in Singapore.

Locally, sales were primarily derived from the Central region with RM1.636 billion, followed by the southern region (RM296 million) while other regions contributed RM142 million. Completed inventories worth RM425 million were cleared during this first half of the year.

S P Setia president and CEO Datuk Khor Chap Jen said the results achieved for the first half of the year were largely attributed to the strong sales performance for the first five months of the financial year buoyed by a generally upbeat local market sentiment early this year.

"However, the onset of the Full Movement Control Order (FMCO) lockdown in June 2021 had slowed down the conversion of bookings into confirmed sales,” he said in the statement.

Nevertheless, he noted that there were high take-up rates during the first half of 2021 especially in established and matured townships with bookings received as of June 30 stood at RM954 million.

"A total gross development value (GDV) of RM687 million landed properties comprising mostly affordable double-storey terrace and/or semi-detached homes were launched during this period... Setia Alam and Bandar Kinrara’s bookings hovered above 90% for the said launches,” added Khor.

“Overall, we remain positive on the market outlook and will continue to focus on achieving our sales target set of RM3.8 billion. We remain optimistic yet cautious, underpinned by the strong pent-up demand from the home buyers under the pandemic backdrop.

"We expect the economy in general and the property sector specifically to recover gradually in the coming quarters on the back of an efficient rollout of the vaccination programme... It is our hope that the economy will be reopened in stages, and its recovery process will be expedited,” concluded Khor.

Meanwhile, S P Setia recorded a revenue of RM2.14 billion and profit before tax (PBT) of RM301.4 million in the two quarters under review. Both are driven by strong take-up rates and higher sales of completed inventories of RM425 million (137% increase from RM179 million from 2020).

For the second half of FY 2021, the developer will be offering new launches worth RM2.47 billion in various townships including Setia Alam, Setia Ecohill 2, Setia Eco Park, Setia Eco Glades, Setia Mayuri, Temasya Glenmarie, Bandar Kinrara, Setia Alam Impian and Kota Bayuemas in the Central region; Setia Fontaines in Penang; Taman Rinting, Taman Industri Jaya and Setia Tropika in the Southern region.

As of June 30, 2021, S P Setia has 47 ongoing projects, with an effective remaining landvbank of 7,483 acres valued at a GDV of RM125.1 billion and total unbilled sales of RM10.3 billion, which will tide the company over the next two years.

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