fbpx

First 6 months, SP Setia’s net profit margin at 12.83%

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Want to know what’s the net profit margin for one of Malaysia’s most famous developer, SP Setia? It’s 12.83% for first 6 months. For the first 6 months, it’s net profit stood at RM328.51 million versus a revenue of RM2.56 billion. YES, this is just for 6 months. Yes, the margin is not that amazingly high, unlike what I thought but the absolute number at the end of one financial year will be huge. It said the increase in profit was because of increased revenue as well as the profit recognition from the handover of the group’s first residential tower in Fulton Lane, Melbourne.

As for it’s Malaysian operations, SP Setia said that challenges such as weak buying sentiment and tighter lending from banks would continue to weigh on its results. In fact, with these cooling measures, it is revising its sales target for FY2015 down by RM600 million. From RM4.6 billion to RM4.0 billion. As it is now focussed on mid-priced properties as well as some amazingly huge unbilled sales of RM11 billion, it should continue to do well. Its acting president and CEO Datuk Khor Chap Jen said, “We are confident that with the right products and the strategic location of our remaining landbank, we will continue to witness strong demand for our projects in the current financial year.”

For any real slowdown in the economy, property developers’ results would be another reliable sign. You can see other signs here: spotting signs of a property bubble, 3 points (updated) It is not possible for the Malaysian economy to do badly but their profits to rise continuously. With a slowing economy as well as negative sentiment, this will affect the results from developers. When we refer to SP Setia’s result, it has not really shown these ill-effects BUT do note that it has revised its sales targets down by RM600 million. This by itself would have given us a hint of how tough the situation has become even as many of these branded ones switch their focus to more affordable homes. Happy buying.

written on 21 June 2015

next suggested article: Public Park in Battersea London, let’s take a stroll

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

We love to hear from you (Facebook Comment)

LIKE us for property news update, FREE.

Advertisement Banner

kopiandproperty.com

kopiandproperty.com

kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.

Advertisement Banner

LIKE us for property news update, FREE.

Property investment news everyday? Subscribe for free!

An article a day, keeps updated all the way.

Join 1,316 other subscribers

Property investment news everyday?

An article a day, keeps updated all the way. Subscribe for free!

join the family

Like us for daily investment news and more

Hit the like

%d bloggers like this: