(Aug 14): S P Setia Bhd’s (KL:SPSETIA) reported its highest quarterly net profit in six years, thanks largely to land sales and the property developer said it remains upbeat on prospects for the coming quarters.

Net profit for the second quarter ended June 30, 2024 (2QFY2024) was RM295 million compared with RM43.1 million a year earlier, S P Setia said in an exchange filing. Earnings per share improved to 6.3 sen from 1.06 sen previously.

Revenue for the quarter rose 58.5% year-on-year to RM1.5 billion from RM942.7 million, boosted by income from land sale, which grew more than sixfold to RM564 million from RM86 million.

No dividend was declared for the quarter.

“We are optimistic about our operations and financial outlook for the rest of the financial year. This performance underscores our strategic focus on the Malaysian market, particularly in the southern and central regions," said S P Setia President and CEO Datuk Choong Kai Wai.

S P Setia plans to tap on rising demand for industrial development by exploring investment opportunities and potential strategic partnerships for lands currently earmarked for industrial park development, particularly in Setia Alaman and the southern region, he said.

The company is also poised to unveil major projects such as the first phase of Setia Federal Hill in Kuala Lumpur with an estimated gross development value of RM1.4 billion.

"Our strategic portfolio management and project launches are setting a strong foundation for sustainable growth,” said Choong. “We shall ramp up our efforts to capitalise on market opportunities and deliver more value to our shareholders in the long run.”

For the six-month period ended June 30, 2024 (6MFY2024), net profit tripled to RM372.4 million from RM98.5 million, while revenue increased by 55.5% to RM2.97 billion from RM1.91 billion.

S P Setia has achieved RM2.3 billion in land and development sales so far this year, slightly more than half of its own target of RM4.4 billion for the full year of 2024. The bulk of the sales came from the central region led by the Setia Alaman industrial park.

The southern region, particularly Johor, contributed 35% of sales, with further growth anticipated later in the year due to the Rapid Transit System Link and Special Economic Zone developments.

Shares in S P Setia gained one sen or 0.66% to close at RM1.52 on Wednesday, valuing the company at RM7.39 billion. Year to date, the counter has racked up a nearly 92% gain, tracking a rally in the sector benefiting from rising interest for industrial properties.