21-05-2025
- Business
- New Straits Times
SP Setia's Q1 earnings dip 13pct on softer land sales, overseas slowdown
KUALA LUMPUR: SP Setia Bhd's net profit for the first quarter ended March 31, 2025, fell 13 per cent to RM67.02 million from RM77.33 million a year earlier, as lower land sales and reduced contributions from its international operations weighed on performance.
Revenue for the quarter dropped 48 per cent to RM770.70 million from RM1.48 billion a year earlier, the group said in a filing with Bursa Malaysia.
"This decline is primarily due to lower revenue from land sales and contributions from Australia and Vietnam following the substantial handovers of completed projects in 2024.
"Additionally, domestic property development revenue in the current quarter was also lower," it added.
Group president and chief executive officer Datuk Choong Kai Wai said the quarter was marked by slower overseas performance but noted resilience in key domestic corridors.
"Our local sales continue to gain traction, led by strong demand in the Central and Southern regions. We remain confident in achieving our RM4.8 billion sales target this year," he said.
Pre-tax profit declined to RM141.47 million from RM181.20 million, in line with the lower revenue, with land sale contributions easing to RM52 million from RM64 million in the same quarter last year.
Despite the topline contraction, earnings from the group's investment properties and hotel operations grew, helping to cushion the impact.
"Pre-tax for the quarter improved year-on-year mainly due to higher contributions from investment properties and hotel operations," the group said.
SP Setia booked new sales of RM718 million in the quarter, with local projects accounting for RM489 million or 68 per cent. International sales, largely from Australia and Vietnam, made up RM229 million.
Choong said the group would maintain its strategic focus on township developments and land monetisation to drive growth.
"We are progressing steadily with our RM5.1 billion planned launches in property development and RM300 million in industrial developments," he added.
As of end-March, the group held unbilled sales of RM3.8 billion across 42 ongoing projects. Its land bank stood at 5,364 acres with a remaining effective gross development value of RM120.1 billion.
No interim dividend was declared for the quarter.
