SP Setia net profit up 9.2% to RM260m

KUALA LUMPUR: SP Setia, which posted a net profit of RM260 million for the financial year ended Oct 31, 2007, on the back of RM1.15 billion in revenue, targets group sales to hit RM1.8 billion in FY08.

Net profit rose 9.16% from RM238.2 million a year ago. Earnings per share was 38.72 sen. It also proposed a final dividend of 15 sen per share less tax, which brings the total dividend for the year to 25 sen per share.

In the fourth quarter, revenue rose 14.4% on-year to RM317.16 million, while net profit increased 41.7% on-year to RM99.79 million.

Group managing director and chief executive officer Tan Sri Liew Kee Sin said yesterday its profits and revenue were primarily driven by established projects. They were Setia Alam and Setia Eco Park in Shah Alam, Duta Tropika in Sri Hartamas, Setiahills in Ampang, Bukit Indah, Setia Indah and Setia Tropika in Johor Bahru and Setia Pearl in Penang.

“The group targets RM1.8 billion in sales for FY08. That will be a 50% jump in sales, and we are very confident we can do it. We feel the economy is right (for the growth).

“We are evolving from a landed property developer to a fully integrated international developer,” said Liew, adding that the integrated projects would give it better value, income and margins.

Liew said the group’s total sales totalled RM1.2 billion, up 33.3% from RM900 million in FY06. On the RM1.8 billion sales target, he said it would come from 20 active projects next year including four new ones, among which is the Duta Enclaves bungalow project in Kenny Hills and EcoLakes in Vietnam. Its maiden luxury condominium project, Setia Sky Residences in KL, is scheduled for launch next year.

Asked if SP Setia planned to expand to other countries after Vietnam, Liew said SP Setia had received invitations from India and China, but added that it wanted to focus on Vietnam.

“We want to prove to the Vietnamese authorities that we are serious developer,” he said, adding it planned to acquire more landbanks there.

Its 500-acre joint venture with state-owned conglomerate Becamex IDC Corp in Ho Chi Minh City would begin in March 2008.

In Malaysia, SP Setia would team up with Sabah’s state authorities to undertake an integrated project with commercial buildings, hotel and apartments in Kota Kinabalu.

“We think Sabah has a lot of potential,” said Liew. He added SP Setia was negotiating for a high-value piece of land in Kota Kinabalu. Details would be announced soon, he added.

By The EDGE MALAYSIA (by Sharon Tan & Lim Yu Min)