S P Setia 3Q net profit up

PETALING JAYA (Sept 11): S P Setia Bhd’s net profit for the third quarter ended July 31, 2015 (3QFY15) jumped 153% to RM261.79 million or 10.18 sen a share, from RM103.32 million or 4.12 sen a share a year ago, the digitaledge DAILY reported today.

The group attributed improved profit to increased revenue and profit recognition from the sales achieved to date, and the timely handovers of its maiden property project, Fulton Lane in Australia, which was accounted based on the completion method.

Revenue for the quarter was up 81% at RM1.63 billion from RM902.66 million a year ago the group said.

S P Setia’s venture into the Australian market bodes well for the group amid the current challenging property market, said S P Setia acting president and chief executive officer, Datuk Khor Chap Jen said in a statement yesterday.

"Fulton Lane's timely handover has helped the group to [garner] strong revenue and profit recognition while the S P Setia brand has begun to [be recognised by] the Australian market as evident in our two sold-out projects in Melbourne.

"We will continue to seek new ventures Down Under to further expand our portfolios overseas," said Khor.

Khor said the group achieved RM744 million in sales in the third quarter, adding that as at July 31, 2015, the group’s total sales for the first nine months of the current financial period totalled RM2.54 billion.

The group’s international projects posted a sales growth of 15.5% from the previous quarter, with sales from Battersea Power Station in London and Singapore projects recording an improvement of 7.7% and 65% respectively, he said, noting that local projects’ sales of RM573 million contributed significantly to overall sales during the quarter.

Meanwhile, S P Setia's maiden project in Singapore, 18 Woodsville is currently in progressive handover stages, having obtained the temporary occupation permit (TOP) two months ahead of schedule.

Its second project, Eco Sanctuary, is also on track for completion, it added.

Khor acknowledged that 2015 has been a challenging year for Malaysian developers given the volatility of the market, cooling measures imposed by the government, and the increasingly cautious financing environment adopted by banks.

“However, the group is positive that adapting its product launches to meet the demand for mid-priced and affordable homes within its mature townships will create value for purchasers. Currently, we have a total unbilled sales amounting to RM9.9 billion, and we are confident that the group will continue to perform well in the remaining financial year,” said Khor.