KUALA LUMPUR: S P Setia Bhd is confident of meeting its 2011 sales target of RM3 billion after the company notched up sales of RM1.66 billion in the first seven months of the year.
“Total sales of RM1.66 billion for the first seven months of the financial year have surpassed the group’s full-year sales achieved in every year of the group’s history except for the RM2.315 billion recorded in FY10.
“Based on the strong sales momentum for existing projects and the imminent launch of the group’s highly anticipated KL EcoCity project, management is very confident that barring unforeseen external shocks, the group’s FY11 sales target of RM3 billion will be met,” it said yesterday.
The company’s net profit for 2QFY11 ended April 30 surged 80% to RM92.22 million from RM51.21 million a year earlier on gain from the disposal of an investment property.
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| One of the house in S P Setia's award-winning Setia Eco-Park in Shah Alam. |
Revenue for the quarter rose to RM496.75 million from RM409.07 million a year earlier. Earnings per share was 5.55 sen while net assets per share stood at RM1.78.
S P Setia declared a gross interim dividend of five sen per share in respect of FY11 ending Oct 31.
Reviewing its financial performance, S P Setia said its profit and revenue were principally derived from its property developments in the Klang Valley, Johor Bahru and Penang.
“Ongoing projects which contributed to the group’s profit and revenue include 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, Setia Pearl Island and Setia Vista in Penang.
“Apart from property development, the group’s construction and wood-based manufacturing activities also contributed to the earnings achieved,” it said.
On its prospects, the company said its 2Q sales were RM671 million, with a cumulative six-month sales of RM1.41 billion.
The property developer said this was its strongest ever 2Q and six-month sales, eclipsing the previous highs achieved in 2QFY10 and six-month FY09 by 12% and 17% respectively.
This article appeared in The Edge Financial Daily, June 10, 2011.