S P Setia exceeds FY23 sales target, hits RM5.1bil
KUALA LUMPUR: S P Setia Bhd recorded total sales of RM5.1bil in the financial year ended Dec 31, 2023 (FY23), outperforming its target of RM4.2bil by 21%.

The developer said the higher sales was driven by strong demand for the group’s offerings and land monetisation.

Its local projects accounted for a significant portion of revenue with RM4.41bil billion, or approximately 86% of total sales.

“The central region proved crucial for the group, contributing RM3.30bil in sales, followed by the southern region of RM860mil. Additionally, the northern and eastern regions made valuable contributions totalling RM247.0mil,” S P Setia said in a statement.

“The group’s sales success is supported by multiple factors, including its robust sales pipeline anchored by 41 ongoing projects, with a remaining land bank of 6,311 acres and an effective remaining gross domestic value (GDV) of RM119.74bil,” it said.

For the fourth quarter ended Dec 31, S P Setia’s net profit jumped 71.1% to RM148.2mil, or earnings per share of 3.53 sen against RM86.6mil, or 1.37 sen in the same quarter a year earlier.

Revenue, however, fell to RM1.4bil compared with RM1.7bil a year ago.

For the full financial year, the developer posted a net profit of RM298.6mil on revenue of RM4.37bil.

The group further reduced its borrowings by RM1.30bil, bringing down the net gearing ratio to 0.49x from 0.57x in FY22

For FY23, the board of directors declared dividend of 1.34 sen per share.

“We remain optimistic in the group’s trajectory this year, with key focuses in accelerating township developments, large-scale industrial developments and strengthening our international presence,” president & chief executive officer Datuk Choong Kai Wai said.

He said the group is optimistic about the real estate sector, fuelled by catalysts such as the Malaysia My Second Home (MM2H) Visa Liberalisation Plan and stamp duty exemption for first-time buyers, with the country's GDP expected to grow between 4% and 5% this year.

In FY24, S P Setia will continue with its development plans in Vietnam and Australia, where for the latter, the group expects to maintain the momentum of its existing presence in Australia, which will be strengthened through the development of the newly-acquired Sydney land.

“S P Setia remains positive in its outlook for FY24, leveraging its strength and diversified portfolio to achieve a sales target of RM4.40bil,” it said.
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KUALA LUMPUR: S P Setia Bhd recorded total sales of RM5.1bil in the financial year ended Dec 31, 2023 (FY23), outperforming its target of RM4.2bil by 21%.