S P Setia Berhad intends to launch new property projects worth RM4 billion in the current fiscal year 2022 (FY2022), with a focus on landed residential projects.
Its president and chief executive officer, Datuk Choong Kai Wai, said that the improvement in overall income, employment conditions, and consumer sentiments are expected to boost household spending, which bodes well for the property sector.
S P Setia will launch new landed residential projects in the central region, including Setia Alam, Setia Eco Glades, Setia Safiro, Setia Alam Impian, Bandar Kinrara, Setia Bayuemas, Setia Ecohill and Ecohill 2, Setia Eco Park, and Setia Warisan Tropika.
In the southern region, it will launch Setia Indah, Taman Rinting, and Taman Pelangi Indah, while in the northern region it plans to launch Setia Fontaines.
In 2022, the group anticipates a gradual recovery in the Malaysian economy, supported by continued growth in global demand and higher private sector spending, he said in a statement yesterday.
Choong believes that the disruptions in the global supply chain will cause headline inflation to rise marginally.
Given these positive sentiments, S P Setia has set a sales target of RM4 billion for FY2022.
S P Setia has 48 ongoing projects and an effective remaining landbank of 2,928.71 hectares with a gross development value of RM122.4 billion as of the end of 2021.
In FY2021, S P Setia returned to profitability, posting a net profit of RM284.36 million for the year, compared to a net loss of RM320.75 million in FY2020.
Revenue increased from RM3.23 billion to RM3.76 billion.
Choong said that the group had another year of unrivalled sales totaling RM4.26 billion in FY21, exceeding its original sales target of RM3.8 billion and solidifying its position as the top property developer in terms of sales.
The central region contributed the most sales (RM2.92 billion), followed by the southern region (RM556 million).
S P Setia's international business generated a total of RM762 million in revenue.
According to the developer, its residential properties in established Klang Valley townships such as Bandar Setia Alam and Bandar Kinrara saw strong take-up rates in the fourth quarter of 2021.
Choong said that the government's decision to extend the Home Ownership Campaign until December 31, 2021, boded well for the company, as it was able to clear RM754 million in completed inventories.
"Despite the challenging landscape, we are encouraged by the market's encouraging response to our products and counter-strategies," he said.
Choong believes that S P Setia's unbilled sales of RM10.2 billion will provide earnings visibility in the short to medium term.