SP Setia focuses on landed property for 2020 sales target of RM4.55bil

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SP Setia is confident of retaining its position as the leading developer in Malaysia, said Khor

SP Setia is confident of retaining its position as the leading developer in Malaysia, said Khor

KUALA LUMPUR: Property developer SP Setia Bhd will continue to concentrate on launching landed residential products as part of its going-forward strategy to maintain its 2020 sales target of RM4.55bil.

This is also in response to the demand of the owner-occupiers, especially in established township developments by the group. 

These areas include Setia Alam, Setia Ecohill 1 & 2, Setia Alamsari, Bandar Kinrara and Alam Impian in the Central region, Setia Tropika, Taman Pelangi, Taman Pelangi Indah and Taman Rinting in the Southern region and Setia Fontaines in the Northern region. 

“Leveraging on the versatility of product offerings of the group, SP Setia is confident of retaining its position as the leading developer in Malaysia while maintaining the sales target of RM4.55 billion for FY2020. 

“Nevertheless, with the global outbreak of Covid-19 virus ongoing and its impact on the economic outlook remains uncertain, the group will monitor closely on how the situation unfolds,” said SP Setia president and CEO Datuk Khor Chap Jen. 

Underpinned by an unbilled sales pipeline of RM10.67bil, 48 ongoing projects and an effective remaining land banks of 8,858 acres with a gross development value (GDV) of RM141.84bil as at Dec 31 2019, the group is expected to remain resilient against prevailing market challenges. 

In addition, the group will also launch commercial products such as shop lots with a combined GDV of about RM871mil in Alam Impian, Kota Bayuemas, Temasya Glenmarie, Setia Eco Glades and Taman Pelangi as these commercial products are essential to support and scale up the existing development mix and to ensure the sustainability of these housing areas

The group also announced its financial results for the year ended Dec 31, 2019 where it achieved total sales of RM4.56bil. This is in spite of a challenging year which was plagued with global geopolitical issues such as the US-China trade tension, unrest in Hong Kong as well as persistent tight lending criteria locally. 

The group’s revenue and profit before tax for 2019 stood at RM3.93bil and RM598mil respectively. 

In respect of the Islamic Redeemable Convertible Preference Shares A and Islamic Redeemable Convertible Preference Shares B, the company declared a preferential dividend of 6.49% per annum and 5.93% per annum respectively for the financial period from July 1 to Dec 31 2019. 

The company is also pleased to declare a dividend of 1 sen per share, representing a payout ratio of 50% for 2019. 

Local projects remain the foremost contributor to the sales contributing RM4bil or approximately 88% of the sales while the remaining RM543mil or 12% were filled by international projects such as UNO Melbourne in Australia, Daintree Residence in Singapore and EcoXuan in Vietnam. 

On the local front, the sales were largely from Central region with RM2.78bil, aided by RM747mil contribution by the Southern region while the Northern region contributed another RM480mil. 

“We are pleased with this achievement and proud to maintain our position as the top property developer in Malaysia in terms of sales,” said Khor. 

In the final quarter of 2019, SP Setia witnessed the strongest period for the group with a spike in sales of RM1.49bil. This included the eleventh-hour purchases by home buyers to take opportunity of the incentives of the Home Ownership Campaign (HOC) whereby RM675mil sales from the HOC were secured during the last quarter of the year. 

For the year, the total sales brought in by the HOC amounted to RM1.82bil. The total sales achieved during the year were also complemented by the effort in clearing inventories which resulted in the monetisation of RM637mil worth of inventories. 

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