KUALA LUMPUR: SP Setia Bhd’s net profit rose marginally to RM93.38mil, or 4.85 sen in earnings per share, for the second quarter ended April 30, against RM92.2mil, or 5.55 sen in earnings per share, a year ago.
Revenue increased 24.2% to RM617.2mil from RM496.7mil.
In notes accompanying its financial results, SP Setia said that for property development, revenue increased by 29% while pre-tax profit rose 6%.
“The increase in revenue is mainly contributed by higher recognition from residential and commercial properties in the Klang Valley, Johor Bahru and Penang,” it said.
The property developer said its pre-tax profit from a year ago had included gain from the disposal of an investment property, resulting in the lower increase in pre-tax profit during the current quarter as compared to the increase in revenue.
SP Setia said ongoing projects that contributed to the profit and revenue included 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 Bahru; and Setia Pearl Island, Setia Vista and Setia Greens in Penang.
In the first six months, SP Setia posted a higher net profit of RM166.3mil on a 9.2% increased in revenue to RM1.1bil.
“SP Setia’s strong sales performance has not abated despite concerns about a possible slowdown in the global economy. The group’s 7-month sales for the financial year 2012 has reached RM2.14bil, placing it well on track to achieve RM4bil sales target for financial year ending Oct 31, 2012 (FY12),” it said in a statement.
President and chief executive officer Tan Sri Liew Kee Sin said the group’s existing projects in the Klang Valley, Johor Baru and Penang would continue to be the main contributors to sales.
“We are aiming to achieve sales of about RM3.4bil from our Malaysian projects, with our overseas projects giving us another RM600 to RM700mil in FY12.
“Our Setia Alam and Setia Eco Park flagship projects can easily sustain annual sales of RM1bil collectively for at least the next seven years. We also expect our iconic KL Eco City in Bangsar, which has a total gross development value of more than RM6bil, to contribute RM1bil in sales this year,” he said.
He added that the remaining sales would come from its projects in Johor, Penang, Sabah and overseas.
“Our six active projects in Iskandar Malaysia are doing tremendously well and we have the breadth and depth of product offerings to put us on track to deliver RM1bil worth of Johor sales in FY12,” Liew said.
On economic uncertainty, Liew said it had presented the group with some outstanding opportunities.
“In line with our ambitions to become an international property player, we have joined forces with Sime Darby Property Bhd to secure the iconic Battersea Power Station (BPS) site in central London.
“This is evidence of SP Setia’s continued focus to acquire choiced assets on favourable terms to further strengthen the group’s growth prospects consistent with its long-term expansion plans,” he said.
The joint-bid partners have until July 4 to formalise the acquisition of the BPS site, and will make the necessary announcements in due course.
In a separate announcement, SP Setia said its public spread stood at 21.45% on June 15 and hence it did not comply with the public shareholding spread requirement.
It said Bursa Malaysia had approved its application for an extension of time of six months until Sept 18 to comply with the required public shareholding spread.
“Permodalan Nasional Bhd (PNB) and the company are in the midst of formulating a proposal to rectify the company’s required public shareholding spread, taking into consideration the sustainability of the company’s share price performance and the trading volume of SP Setia Shares.
“Nevertheless, as part of PNB’s rectification plans, PNB and several of unit trust funds managed by PNB had pared down their interests in SP Setia by disposing 8.94 million shares in the open market between April 3-13,” it said.
By The Star
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