KUALA LUMPUR (May 20): S P Setia Bhd’s (KL:SPSETIA) net profit more than halved to RM31.12 million in the first quarter from RM67.02 million a year ago, dragged by higher foreign exchange losses despite logging higher revenue.

The latest earnings marked its lowest quarterly profit since 3QFY2021, when the group recorded a net profit of RM11.01 million.

It booked a higher realised foreign exchange loss of RM5.87 million and unrealised forex loss amounting to RM14.42 million in the first quarter ended March 31, 2026 (1QFY2026), the group's bourse filing showed on Wednesday (May 20).

Compared to 1QFY2025, the property developer had a realised forex loss of RM27,000 and an unrealised forex gain of RM4.84 million.

Quarterly revenue, however, grew by 7.25% year-on-year (y-o-y) to RM826.54 million in 1QY2026, up from RM770.7 million, supported by stronger revenue contribution from its property development segment.

No dividend was declared by the group during the quarter under review.

The property development segment remained the group’s main earnings contributor, generating RM779 million in revenue and RM106.17 million in pre-tax profit during the quarter.

The segment’s pre-tax profit, however, fell 20% from RM133.32 million recorded in 1QFY2025, due to lower land profit and unrealised foreign exchange losses arising from retranslation of foreign currency advances.

During the quarter under review, the group recorded secured sales of RM555 million, of which RM500 million came from domestic development, while the remaining RM55 million was contributed by international development.

In a statement, S P Setia president and chief executive officer Datuk Zaini Yusoff said 1QFY2026 underscores the strength of the group’s operating model and disciplined execution, supported by prudent financial management and continued focus on cost and cash efficiency.

Looking ahead, S P Setia said it remains committed to its FY2026 sales target of RM4.6 billion.

While rising construction costs may influence the timing and structuring of new project launches, the group said it remains focused on execution through proactive cost management and operational discipline.

This includes prioritising cost efficiency and value optimisation, maintaining prudent cash management, strengthening liquidity buffers and preserving financial flexibility amid ongoing uncertainties, it noted.

However, the group’s near-term exposure is manageable, supported by limited exposure from existing construction contracts, alongside steady project execution, while no significant slowdown in underlying demand is observed, it added.

On top of that, the group said it will continue to advance its strategic growth initiatives across key segments.

“Within the industrial expansion segment, progress is being made on its plans at Setia Fontaines industrial park development in Penang following rezoning approval on Oct 30, 2025,” the group said.

On the international front, Setia Edenia in the township of EcoXuan in Ho Chi Minh City, Vietnam remains on track for completion in 2027.

S P Setia closed unchanged at RM1.06 sen on Wednesday, giving the group a market capitalisation of RM5.30 billion. The counter has gained 41% year to date.