- Total land and development sales achieved for 2Q2024 was RM2.30 billion, surpassing more than 50% the group’s FY2024 target of RM4.4 billion.
KUALA LUMPUR (Aug 14): S P Setia Bhd today announced that for the six months ended June 30, 2024, the group’s total net profit after tax reached RM404 million, an increase from last year’s profit of RM121 million, as it gained RM361 million profit from strategic monetisation of its landbank in Taman Pelangi Indah 2, Johor and Glengowrie, Semenyih.
In 2Q2024, the group concluded the disposal of its 50% equity stake in Retro Highland Sdn Bhd to MMC Land Sdn Bhd pertaining to Taman Ikan Emas, Cheras redevelopment project under the Public-Private Strategic Partnership with Dewan Bandaraya Kuala Lumpur. The settlement was via a full cash consideration, that resulted in a RM56 million profit during the period.
Total land and development sales achieved for 2Q2024 was RM2.30 billion, surpassing more than 50% the group’s FY2024 target of RM4.4 billion. Local projects contributed approximately 96% S P Setia’s development sales, with the Central region dominating the development sales (60%) mainly from Setia Alaman industrial park’s contribution.
In Johor, the Southern region’s robust sale performance accounts for approximately 35% of the group’s development sales, with further growth potential expected from the RTS Link infrastructure development and Special Economic Zone (SEZ) establishment towards the later part of the year.
With successful de-gearing strategies, RM10.1 billion borrowings in 4Q2023 has declined by RM700 million within six months to RM9.4 billion as of 2Q2024. Net gearing ratio has consistently strengthened over the past few quarters to 0.41x per 2Q2024, compared to 0.49x in 4Q2023.
S P Setia also achieved RM244 million reduction of stocks compared to 4Q2023 level, representing ~15% clearance progressively taking place.
“We are optimistic on our operations and financial outlook for the rest of the financial year. This performance underscores our strategic focus on the Malaysian market, particularly in the Southern and Central regions," said S P Setia president & CEO Datuk Choong Kai Wai. (pictured)
Leveraging on the rising market demand for industrial development, "We continue exploring feasible investment opportunities and potential strategic partnerships for our lands currently earmarked for industrial park development particularly in Setia Alaman and the Southern Region," added Choong.
The group is poised to unveil projects such as the first phase of Setia Federal Hill in Jalan Bangsar, Kuala Lumpur with an estimated GDV of RM1.4 billion.
Reflecting on the group’s financial health and prospects, Choong stated: "Our strategic portfolio management and project launches are setting a strong foundation for sustainable growth. We have demonstrated consistency of crucial financial improvements in the past few quarters, we shall ramp up our efforts to capitalise on market opportunities and deliver more value to our shareholders in the long run."
In conjunction with S P Setia’s 50th anniversary in 2024, a series of sales and marketing campaigns and customers engagement programs have been launched and set to be rolled out throughout the year, run in collaboration with the group’s various strategic partners. These efforts are expected to strengthen S P Setia’s refreshed brand positioning and boost sales.
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