S P Setia Q2 profit up 12.1% to RM118.39mil

By THE STAR
KUALA LUMPUR: S P Setia Bhd posted profit of RM118.39mil in the second quarter ended April 30, 2014, up 12.1% from RM105.58mil a year ago, underpinned by its ongoing projects.
The property company, which recorded total sales of RM3.2bil in the first seven months up to May 31, said on Wednesday its pre-tax profit and revenue also improved from a year ago.
S P Setia’s profit before tax rose 13.9% to RM165.37mil from RM145.13mil while revenue increased by 26.3% to RM952.35mil from RM753.72mil.
Earnings per share were 3.02 sen compared with 3.95 sen. It declared an interim dividend of 4.0 sen a share.
Ongoing projects which contributed to the profit and revenue achieved include Setia Alam and Setia Eco-Park in Shah Alam, Setia Ecohill in Semenyih, Setia Eco Glades in Cyberjaya, Setia Sky Residences at Jalan Tun Razak, KL Eco City at Jalan Bangsar, Setia Walk in Puchong, Aeropod in Kota Kinabalu.
Other projects included Bukit Indah, Setia Indah, Setia Tropika, Setia Eco Cascadia, Setia Business Park II, Setia Eco Gardens and Setia Sky 88 in Johor Bahru, Setia Pearl Island, Setia Vista, Setia Greens, Setia V Residences and Brook Residences in Penang and 18 Woodsville and Eco Sanctuary in Singapore.
In the first half, its earnings were up 11.3% to RM235.38mil from RM211.32mil in the previous corresponding period.
Profit before tax rose to RM312.53mil from RM280.86mil. Its revenue increased by 12.4% to RM1.674bil from RM1.488bil.
Acting president & CEO Datuk Voon Tin Yow said the group “is on track to achieve its RM5bil sales target set for FY2014 despite the challenging conditions facing the property industry currently”.
“The group’s prospects remains positive going forward as we have unbilled sales of RM11.2bil that will contribute to earnings over the next few years.”
Voon said the various cooling off measures implemented by Bank Negara Malaysia hasdresulted in a moderation of sales for the group in the current quarter as compared to previous quarters.
“Property buyers are also adopting a more cautious approach in buying or investing with speculation rife on possible interest rate hikes in the second half of 2014.
“However, the group is confident that our strong brand name, good product mix and solid cash flow position will enable it to ride out the challenging times,” he said.