(May 21): S P Setia Bhd (KL:SPSETIA) said on Wednesday it remains committed to achieving its RM4.8 billion sales target this year, despite posting a weaker first quarter due to lower revenue from land sales and international projects.

The group, which is scheduled to roll out RM5.1 billion in property development and RM300 million in industrial in FY2025, said net profit for the quarter ended March 31 (1QFY2025) fell 13.3% year-on-year (y-o-y), as revenue nearly halved following major handovers in 2024.

“Despite the market volatility, we will continue to leverage our diversified portfolio while optimising our capital efficiency and expanding our presence across high-growth segments,” S P Setia president and CEO Datuk Choong Kai Wai said in a statement accompanying the group's latest financial results.

Net profit for 1QFY2025 was RM67.02 million, against RM77.33 million in the same quarter a year ago, the property developer said in a filing. Earnings per share dipped to 0.52 sen from 0.56 sen.

Revenue for the quarter dropped 47.8% to RM770.70 million from RM1.48 billion previously, mainly due to the lower contributions from Australia and Vietnam after major handovers in 2024 and a decline in domestic property development revenue.

As at end-March 2025, S P Setia’s unbilled sales stood at RM3.8 billion, supported by 42 ongoing projects and a remaining land bank of 5,364 acres with a GDV of RM120.1 billion.

The company recently launched the ATLAS Melbourne. The project, with a gross development value (GDV) of A$886.7 million (RM2.7 billion), has continued to contribute to the group’s overall sales.

It is also scheduled to launch a new residential project in Vietnam by FY2025.

Shares of S P Setia settled down four sen or 3.25% to RM1.19 on Wednesday, giving the group a market capitalisation of RM5.95 billion.