corporate

SP Setia's earnings surge to RM100.02mil, revenue up 16pct to RM1.26bil in Q3

KUALA LUMPUR: SP Setia Bhd's net profit rose 93 per cent to RM100.02 million in the third quarter (Q3) ended Sept 30, 2024 from RM51.82 million a year ago.

The property developer's revenue increased 16 per cent to RM1.26 billion in Q3 2024 compared to RM1.08 billion last year due to the contribution from land sales.

For the nine months, SP Setia reported a net profit of RM472.38 million from RM150.34 million last year.

Its revenue stood at RM4.23 billion compared to RM2.99 billion in previous year.   

SP Setia said this has reflected robust core property development sales, supported by strategic land monetisation and collaboration success.

Paired with effective cost management initiatives, it said the solid performance underscores the company's ability to navigate market challenges and achieve sustained profitability.

"We are pleased with our financial performance to date, driven by strategic initiatives and strong market demand in the southern and central regions coupled with the right cost management strategies resulting in sustained profitability for SP Setia," said president and chief executive officer Datuk Choong Kai Wai.

As of September 2024, the company has locked in RM556 million of sales in the pipeline.

The property development segment contributed RM477 million, while the Setia Alaman industrial segment added RM79 million.

For the remainder of the year, the company aims to launch an estimated RM1.97 billion in residential, commercial, and industrial properties – with over 62 per cent concentrated in the central region.

With 42 ongoing projects and unbilled sales totalling RM3.50 billion as of Sept 30, 2024, the company showcases strong earnings visibility for the short to mid-term.

SP Setia is dedicated to sustainable performance while actively balancing its capital structure and managing its de-gearing program.

"Our robust pipeline and strategic initiatives underscore our commitment to driving sustainable growth and delivering value to our stakeholders," added Choong.

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