S P Setia Bhd posts RM52.83 mln in net profit for Q1

Last update: 09/05/2019

KUALA LUMPUR, May 9 (Bernama) -- S P Setia Bhd posted a lower net profit of RM52.83 million in the first quarter ended March 31, 2019 (1Q19), compared with RM61.49 million during the corresponding period last year.

In a filing to Bursa Malaysia today, the property developer also said revenue has increased to RM864.91 million during the quarter from RM655.50 million previously.

Its president and chief executive officer Datuk Khor Chap Jen said the group secured RM718 million in sales during the quarter with local projects contributed RM678 million, or 94 per cent of the total sales.

International projects according to him, contributed RM40 million in sales.

"Despite the lacklustre property market, there is still strong demand for landed residential properties from owner occupiers looking to settle down in established township.

"The launch of Clarino, a phase of double-storey terrace houses priced from RM649,000 in the matured township of Alam Impian in March 2019 achieved a commendable take-up rate of 98 per cent within a month," he said in a separate statement.

He added that the ‘wait-and-see’ attitude continues to linger as purchasers await positive leads for the property market to recover. 

"With the pipeline of diversified products, mainly concentrated on landed residential properties, we will roll out more launches the moment the property market picks up,” he said.

For the remaining part of the financial year, the group has planned a total of RM6.47 billion worth of launches, mainly in Klang Valley with RM4.65 billion and Johor with RM1.12 billion.

Planned major launches in Johor are in Setia Tropika, Bukit Indah Johor, Setia Eco Gardens and Taman Industri Jaya.