S P Setia is a developer I personally follow because of its size. (GDV wise). So yes, you will usually read about these few biggest developers in Malaysia and their happenings in kopiandproperty.com Let’s understand that if Malaysia’s largest few developers are doing okay, I think the market is not as bad as what people say. We read earlier of IJM’s results, click here to read. Then, we read about IOI Properties’ results too. Click here to read. Good news to share. S P Setia is targeting a 10% sales growth target for 2019 and it will be launching RM6.8 billion worth of properties for its FY19 because it expects the industry to recover soon.
Article in TheMalaysianreserve.com here. “This represents a sales growth of about 10% and will further solidify SP Setia’s position as the leading property developer in Malaysia,” said President and CEO Datuk Khor Chap Jen. Furthermore, he was confident that the market will improve this year as it had “bottomed out” last year. SP Setia said local launches will be concentrated in the central region with the planned launches being RM4.98bil. “This includes new projects from I&P Group Sdn Bhd’s landbanks such as Setia Alaman (as an extension of Setia Alam), Setia Mayuri in Semenyih, Setia Tropicale in Salak Tinggi and newly acquired landbanks in Cyberjaya known as Setia Safiro,” Khor added. Launches in the southern region are at RM1.17bil and comes from Setia Tropika, Bukit Indah, Setia Indah, Setia Eco Gardens and Taman Industri Jaya. Meanwhile northern regions will see launches of RM349.3 million while East Malaysia will have launches totalling RM163.5 million. For the full year, SP Setia posted a cumulative FY18 net profit of RM670.96 million, a 32.48% drop from RM993.7 million a year ago, while revenue fell 16.19% to RM3.59 billion from RM4.29 billion. Article in TheMalaysianreserve.com here.
SP Setia’s President and CEO Khor has said that he is confident of Malaysia’s property market recovery and that it has bottomed out in 2018. Due to his confidence, S P Setia is launching RM6.8 billion worth of properties. Do note that launches in central region alone is nearly RM5 billion or 73 percent of the total. The total for northern and southern would be RM513 million and this comprise 7.5 percent of the total launches. Remaining would be outside Malaysia. A look at the net profit for the year versus the total revenue may tell us that the profits are falling faster than the revenue. Lower property prices or lower priced properties versus a year ago? With the current unsold units mismatch, I think the developer which is able to launch properties at the right price will continue to sell well, even if the margins may be lower. Happy following.
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Article written and edited by Charles. News article summarised by Dina Batrisyia.
written on 6 March 2019
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