SP Setia FY19 profit down with RM4.56b sales

PETALING JAYA: SP Setia Bhd’s net profit for the fourth quarter ended Dec 31, 2019 (Q4) fell 26.8% to RM70.13 million from RM95.85 million in the previous corresponding period.

It was dragged down by higher finance costs and lower contribution from property development segment, partly due to higher volume of development phases completed and handed over in the last quarter of FY2018.

Its revenue was 21.9% lower at RM796.17 million against RM1.02 billion previously.

The property developer has declared a dividend of 1 sen per share for the quarter under review.

For the full-year period, SP Setia’s net profit also dropped 48.3% to RM343.72 million from RM665.26 million a year ago, while revenue grew 9.3% to RM3.93 billion from RM3.59 billion a year ago.

The group said it achieved total sales of RM4.56 billion, hitting the RM4.55 billion sales target of FY19 despite a challenging year. For FY20, the sales target is maintained at RM4.55 billion.

Local projects remained the foremost contributor to the sales, contributing RM4.01 billion or 88% of the sales.

SP Setia said it will continue to concentrate on launching landed residential products which are in line with the demand of the owner-occupiers.

In addition, the group will launch commercial products such as shop lots with a combined gross development value (GDV) of RM871 million.

Underpinned by an unbilled sales pipeline of RM10.67 billion, 48 ongoing projects and an effective remaining land banks of 8,858 acres with a GDV of RM141.84 billion as at Dec 31, 2019, SP Setia said the group is expected to remain resilient against prevailing market challenges.

At the midday break, SP Setia’s share price was unchanged at RM1.28 on 669,400 shares done.