Malaysia - Setia Posts 10% Profit Rise For Third Quarter

September 18, 2012

Higher revenue recognition from its property projects has helped SP Setia Bhd turn in a positive report card for the quarter ended 31 July.

Net profit rose to RM 100.4 million for SP Setia Bhd at the end of July, representing a 10% y-o-y rise for the company's third quarter. The profit increase was matched by a 12.1% y-o-y rise in revenue to RM 654.2 million for the quarter under review.

The developer said that higher revenue recognition from its residential and commercial properties in the Klang Valley, Johor Bahru and Penang helped to power its positive results, which was built upon increased levels of overall group sales achieved since FY 2010.

It added that its profit-before-taxation margin for its property development segment also increased from 19% to 23% on the back of the group's success in steadily increasing its selling prices through continuous value creation.

For the nine months ended July 31, SP Setia posted a 8.7% y-o-y rise in net profit to RM 266.8 million while revenue rose 10.25% to RM 1.763 billion.

In addition, the group said its sales for the 10 months ended 31 Aug had hit RM 3.312 billion and exceeded its full-year sales in the previous financial year.

Setia said ongoing projects had contributed to the period's strong sales, including Setia Alam and Setia Eco-Park at Shah Alam; KL Eco City in Bangsar; SetiaWalk at Pusat Bandar Puchong; Setia Business Park II and Fulton Lane in Melbourne.

In addition, newly launched projects such as Aeropod in Sabah and 11 Brook Residences in Penang also contributed to the sales performance.