SP Setia net profit down 25% in Q4 on slower sales

PETALING JAYA: SP Setia Bhd’s net profit fell 25% to RM56.9mil in the final quarter ended Oct 31 without the one-time gain that boosted its income in the previous corresponding period.

The group’s latest quarterly performance was also affected by slower sales.

The drop in profit dragged down the group’s full-year (FY09) earnings to RM171mil, or 16.8 sen per share, compared with RM213mil, or 21 sen per share, in the previous year.

Revenue slipped 4.8% to RM1.4bil from RM1.47bil in FY08.

SP Setia will pay a final dividend of 9 sen per share, bringing the total payout for FY09 to 14 sen compared with 17 sen in FY08.

SP Setia, the most valuable property stock on Bursa Malaysia, said its earnings would be back on the growth track in FY10.

In notes accompanying the group’s latest set of results, SP Setia said market forecast of 10% to 15% growth in earnings for FY10 was “in line with internal management targets”.

Affin Research analyst Loong Kok Wen, who attended a briefing by SP Setia yesterday, said the group’s full-year performance was well within market expectation.

“The management also indicated that its focus next year will be on margins,’’ she said.

To do this, SP Setia intends to improve overall yields by targeting to grow its gross development value and create higher values at all its projects.

This includes launching the RM6bil Kuala Lumpur Eco City by October next year.

Other plans include the disposal of “certain non-core” assets and deployment of the group’s strong balance sheet to acquire new landbank.

SP Setia said it achieved “a new benchmark” in terms of total group property sales that reached RM1.65bil in FY09.

This was 18% higher than the previous high achieved in FY08 and 50% better than its own target set for the year.

By The Star (by IZWAN IDRIS)