SP Setia sales reached 89% of FY21 target


KUALA LUMPUR: SP Setia Bhd recorded a commendable sales performance of RM 3.38 billion for the period ended September 30, 2021, despite uncertainties caused by the Covid-19 pandemic.

Local projects contributed RM 2.66 billion to global sales while the remaining RM 728 million was contributed by international projects, namely Sapphire by the Gardens and Marque Residences in Australia as well as Daintree Residence in Singapore.

On a nine-month basis, the group recorded revenue of RM 2.73 billion and profit before tax of RM 353.7 million, which were significantly higher than in the corresponding period of the previous year, mainly due to the gradual recognition of strong demand placed income rates achieved.

Having reached 89% of the RM3.8 billion sales target for FY21, SP Setia Chairman and CEO Datuk Choong Kai Wai said he was encouraged by the sales figures.

“We are confident in achieving the sales target for fiscal 2021 while remaining firm in our debt initiatives to reduce borrowing and optimize our capital structure to strengthen our platform in pursuit of growth sustainable, ”he said in a Tuesday statement.

Of total sales, the group’s sales of completed inventory amounted to RM 585 million, an improvement from RM 462 million achieved during the same period in 2020, which was a notable achievement given the context. hard.

Meanwhile, the group said it has launched projects with a total gross development value of RM 1.5 billion mainly comprising townhouses and semi-detached houses in the first nine months of fiscal 2021.

Notable launches are planned in the existing townships of Setia Alam, Setia EcoHill, Setia EcoHill 2, Setia Alamsari, Setia Bayuemas, Bandar Kinrara and Setia Eco Park in the central region, Taman Industri Jaya and Bukit Indah in the south region, Setia Greens and Setia Fontaines in the North region and Eco Lakes in Vietnam.

According to Choong, the group is progressing well on its digitalization journey with initiatives deployed on various platforms generating quality leads and facilitating the conversion of reservations into sales.

“We will continue to use digital platforms and create a more robust digital workplace to improve the effectiveness and efficiency of day-to-day operations underpinned by cyber resilience,” he added.

The group is also optimistic about government support for the sector in the recent budget.

He said the homeownership campaign extended until Dec.31, 2021, low interest rates to help boost homeownership, a home loan guarantee program to help small businesses, coupled with the reduction in the real estate gains tax rate from 5% to 0%, for property transferred from the sixth year onwards should arouse the interest of buyers.

As of September 30, 2021, the group had 48 projects underway, with effective remaining land reserves of 7,334 acres valued at GDV of RM 124.6 billion and total unbilled sales of RM 9.84 billion.


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