S P Setia remains resilient in 1Q25, aims for RM4.8bil in FY25 sales
S P Setia president and chief executive officer Datuk Choong Kai Wai
PETALING JAYA: Property developer S P Setia Bhd recorded a profit before tax of RM141mil and a net profit after tax of RM89mil for the first quarter ended March 31, 2025 (1Q25), mainly attributable to operational efficiency and effective cost management.
For 1Q25, S P Setia posted revenue of RM771mil as it continued to demonstrate financial resilience through delivering value to shareholders while also continuing to reduce borrowings by another RM156mil leading to a net gearing ratio of 0.35 times that, on a quarter-to-quarter basis, aligns with the company's debt reduction strategies.
'Our financial performance during the quarter underscores our continued efforts, persistence and implemented strategies, as we adjust to the current market needs and conditions,' S P Setia's president and chief executive officer Datuk Choong Kai Wai said in a statement.
'Despite the market volatility, we will continue to leverage on our diversified portfolio, while optimising our capital efficiency, and expanding our presence across high-growth segments,' he said, adding that the company remains vigilant amidst the fluctuation of market challenges and would continue to monitor the developments, assess potential impacts on its operations and evaluate appropriate strategies to mitigate any adverse effects.
S P Setia would be rolling out RM5.1bil of property projects and RM300mil of planned industrial launches for the financial year ending December 31, 2025 (FY25) as the company continues to accelerate the portfolio of catalytic township developments, eco-industrial parks, strategic partnerships, land monetisation, and capitalising on value creation across its key growth corridors.
For overseas projects, the company's recently launched ATLAS Melbourne, with an estimated gross development value (GDV) of A$886.7mil (RM2.7bil), has shown continued momentum in contribution to overall sales while in Vietnam, new residential launches have been scheduled within the successful developments of EcoLakes in FY25.
The company also remains committed to achieving its RM4.8bil sales target for FY25 leveraging on an established reputation as one of the top-listed sustainable, master planned township developers in Malaysia.
For FY24, the company recorded RM5bil against a target of RM4.4bil.
For 1Q25, it has secured RM718mil in sales with local projects contributing RM489mil or two-thirds of the total sales and international projects contributing RM229mil.
It noted that for the domestic market, RM284mil in sales was secured from the central region and RM189mil from the southern region. As of March 31, 2025, the company has an unbilled sales pipeline of RM3.8bil with 42 ongoing projects. It has a remaining landbank of 5,364 acres, and an effective remaining GDV of RM120.1bil.
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