KUALA LUMPUR (Feb 27): Property developer S P Setia Bhd (KL:SPSETIA) registered total sales of RM5.11 billion in 2025, an increase of 2% compared to RM5.02 billion in the previous year and exceeding its target of RM4.8 billion.

Domestic developments contributed RM3 billion, accounting for 59% of total sales, driven mainly by the southern region with RM900 million and the central region with RM2 billion, the group said in a statement on Friday.

International projects contributed RM700 million, representing 14% of total sales.

This comes despite an 11.46% fall in net profit to RM509.96 million for the year ended Dec 31, 2025 (FY2025) from RM575.95 million in FY2024, as revenue fell 20.32% to RM4.22 billion from RM5.29 billion.

The group said the higher revenue in FY2024 was primarily due to major land transactions as well as higher contributions from Australia and Vietnam following substantial handovers of completed projects.

Net profit for the fourth quarter of FY2025 saw a 165.60% increase to RM275.10 million from RM103.57 million a year earlier, as quarterly revenue jumped 53.27% to RM1.63 billion from RM1.06 billion.

S P Setia said the stronger quarterly performance was driven by higher contributions from its property development segment, particularly in the central and southern regions, as well as strategic land transactions and cost efficiencies from disciplined cost management.

The group declared a final dividend of 2.55 sen per share for FY2025, lower than 2.88 sen in the previous year.

“While we remain mindful of prevailing market challenges, the group’s fundamentals remain sound,” said S P Setia president and chief executive officer Datuk Zaini Yusoff.

“We are cautiously optimistic as we continue to strengthen our footprint across targeted high-growth segments and continue building sustainable long-term value for our stakeholders,” he said.

The group said it continued to pare down borrowings, improving its current net gearing ratio to 0.33 times in line with its debt reduction strategy. Total borrowings stood at RM7.92 billion as at end-December 2025, compared with RM8.58 billion a year earlier.

Looking ahead, the group expects supportive policy measures, including the extension of stamp duty exemptions and enhanced homeownership incentives under Budget 2026 to support market demand.

The reduced overnight policy rate is also expected to improve affordability and overall property market sentiment, it said.

On the international front, S P Setia said Setia Edenia in the township of EcoXuan in Ho Chi Minh City, Vietnam, with a gross development value of US$81 million (RM381.1 million), remains on track for completion in 2027 and is poised to emerge as a key landmark in the northern corridor of Ho Chi Minh City, it added.

“Anchored by its long-term vision, S P Setia will continue to accelerate catalytic township developments and eco-industrial parks, strengthening high-impact strategic partnerships, and optimising value creation across its key growth corridors,” the group added.

Shares of S P Setia closed down three sen or 3.17% at 91.5 sen on Friday, giving the group a market capitalisation of RM4.55 billion.