support@kopiandproperty.com

Advertisement Banner

S P Setia Bhd FY20 results are black and red too

Property developer S P Setia Bhd has just announced their FY20 results and it’s both black and red at the same time.

For Chinese, red is an auspicious colour, more so during the Chinese New Year where everything is in red. Black is not a good colour to wear during the Chinese New Year. However, in the financial world, ‘return to black’ is a positive description while, ‘results are in red’ meant that the company is suffering from losses. Thus sentences such as ‘always in the black’ is a very positive one while ‘always in the red’ means this is a company which investors may want to avoid.

Article in theedgemarkets.com For Q4 FY20, property developer S P Setia Bhd was back in the black with a net profit of RM55.49 million. This is versus a net loss of RM263.43 million in the immediate preceding quarter. On a year-on-year (y-o-y) basis, the group saw its net profit for 4QFY20 drop by 24.03% y-o-y to RM55.49 million, from RM73.04 million in 4QFY19.

For the full financial year, however, the property developer was in the red with a net loss of RM321.03 million, from a net profit of RM353.75 million in the previous financial year. In a separate statement, the group noted that if one were to exclude provisions from its Battersea project in the UK, it would have had a profit before tax of RM319.2 million for the entirety of FY20. Please do refer to the full article for more detailed explanation. Article in theedgemarkets.com

Foreign exposure is less predictable versus the local developments

Battersea project is a super huge project and thus any delay caused by unforeseen circumstances is likely to weigh heavily on S P Setia’s numbers. This also meant that should situations become better and their UK project starts to deliver, we would see a huge contribution from it to the overall number too. Let’s hope with the vaccinations in both the UK and Malaysia, things will continue to get better for S P Setia and all of us too. Happy understanding.

Love news like this and more? Sign up for daily investment news updates.

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles. Else, follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article: Real pilots becoming actors?

Property Investment always start with knowledge. Equip ourselves with more here.

Motion arrow towards right
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Motion arrow towards right
Share on facebook
Share on twitter
Share on linkedin
Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

Advertisement Banner

Facebook Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Table of Contents

Most Recent Posts

join the family

Like us for daily investment news and more

Hit the like