SP Setia Q2 net profit up 80% on investment property

Profit contributor: SP Setia’s Setia Pearl Island project in Penang

PETALING JAYA: SP Setia Bhd's net profit for the second quarter ended April 30 surged 80% to RM92.22mil from RM51.21mil a year earlier due to a gain arising from the disposal of an investment property.

Revenue for the period increased to RM496.75mil from RM409.07mil a year earlier.

In a note to Bursa Malaysia yesterday, the company said its profit and revenue were principally derived from its property development activities carried out in the Klang Valley, Johor Baru and Penang.

“Ongoing projects which contributed to the group's profit and revenue include Setia Alam and Setia Eco-Park at Shah Alam, Setia Walk at Pusat Bandar Puchong, Setia Sky Residences at Jalan Tun Razak, Bukit Indah, Setia Indah, Setia Tropika and Setia Eco Gardens in Johor Baru and Setia Pearl Island and Setia Vista in Penang.

“Apart from property development, the group's construction and wood-based manufacturing activities also contributed to the earnings achieved,” it said.

For the six-month period ended April 30, net profit increased to RM154.26mil from RM89.41mil a year earlier while revenue rose to RM1.02bil from RM772.97mil previously. SP Setia also declared a gross interim dividend of five sen per share in respect of the financial year ending Oct 31, 2011.

On prospects for the current financial year, SP Setia said it had continued to set new sales benchmarks, with second-quarter sales of RM671mil and cumulative six-month sales of RM1.41bil.

“This represents the group's strongest ever second-quarter and six-month sales eclipsing the previous highs achieved in the second quarter of the previous financial year (FY10) and six months FY09 by 12% and 17% respectively.”

SP Setia also said total sales of RM1.66bil for the first seven months of the financial year had surpassed the full-year sales achieved in every year of the company's history, except for the RM2.32bil recorded in FY10.

“Based on the strong sales momentum for existing projects and the imminent launch of the group's highly-anticipated KL EcoCity project, the management is very confident that, barring unforeseen external shocks, the group's FY2011 sales target of RM3bil will be met.”

By The Star