Dato’ Khor Chap Jen, President and CEO of S P Setia. Image from: S P Setia
S P Setia has announced their financial results for the year ended 31 December 2019 with a total of RM4.56 billion. This is in line with hitting their sales target for 2019 of RM4.55 billion sales, despite challenging local and international circumstances of disputes in Hong Kong, US-China trade tension, and tight local lending criteria.
The Group’s revenue and profit before tax stood at RM3.93 billion and RM598 million respectively for FY2019. They have announced a preferential dividend of 6.49% per annum and 5.93% per annum respectively in line with the Islamic Redeemable Convertible Preference Shares A and Islamic Redeemable Convertible Preference Shares B for the financial period of 1 June 2019 to 31 December 2019. They have also announced a dividend of 1 sen per share, representing a payout ratio of 50% for FY2019.
The local projects are the biggest contributor to the sales number with RM4.01 billion, translating to approximately 88% of the sales. The remaining 12%, or RM543 million, came from their international projects such as UNO Melbourne in Australia, Daintree Residence in Singapore, and EcoXuan in Vietnam.
In Malaysia, the majority of the sales came from the central region with a total of RM2.78 billion, while the southern region contributed RM747 million and the northern region RM480 million.
Said Dato’ Khor Chap Jen, President and CEO of S P Setia in a media statement from the Group, “We are pleased with this achievement and proud to maintain our position as the top property developer in Malaysia in terms of sales.”
S P Setia witnessed their highest spike in sales of RM1.49 billion in the final quarter of FY2019. This is inclusive of the final flurry of purchases by home buyers who bought a home under the Home Ownership Campaign (“HOC”), which contributed RM675 million to the final quarter’s sales.
The total sales from the HOC campaign was RM1.82 billion for the year 2019. Sales from the HOC ultimately also complemented the efforts of clearing the Group’s inventories, which resulted in monetising a total of RM637 worth of inventories.
The Group will continue to focus on launching landed residential products in the year 2020, in line with the demand of the owner-occupiers, especially in the established township developments of Setia Alam, Setia Ecohill 1 & 2, Setia Alamsari, Bandar Kinrara and Alam Impian in the Central region. Over in the southern region, development will focus on Setia Tropika, Taman Pelangi, Taman Pelangi Indah and Taman Rinting, while in the northern region focus will be on Setia Fontaines.
Additionally, S P Setia will begin to launch commercial products such as shop lots, with a combined Gross Development Value (“GDV”) of approximately RM871 million in Alam Impian, Kota Bayuemas, Temasya Glenmarie, Setia Eco Glades and Taman Pelangi. These essential developments will support the scale up of these existing neighbourhoods, whilst ensuring sustainability for its residents.
Dato’ Khor Chap Jen further added, “Leveraging on the versatility of product offerings of the Group, S P Setia is confident of retaining its position as the leading developer in Malaysia while maintaining the sales target of RM4.55 billion for FY2020. Nevertheless, with the global outbreak of Covid-19 virus ongoing and its impact on the economic outlook remains uncertain, the Group will monitor closely on how the situation unfolds.”
S P Setia is expected to remain resilient in the face of prevailing market challenges, with 48 ongoing projects, an unbilled sales pipeline of RM10.67 billion, and effective remaining land banks of 8,858 acres that carry a GDV of RM141.84 billion as of 31 December 2019.
(28 February 2020)
