SP Setia Bhd has lowered its sales target for 2016 from RM4 billion to RM3.5 billion, on the back of the continued global uncertainty caused by Brexit and the weak property sentiment in Malaysia.
SP Setia president and chief executive officer Datuk Khor Chap Jen said the group registered satisfactory sales performance despite the current challenging environment.
“The group recorded an admirable 100 percent take-up rate of RM272 million worth of landed properties launched in Setia Eco Templer in Selayang in May, while Setia EcoHill 2 at Semenyih achieved an encouraging 72 percent take-up rate for its Everna cluster semi-detached homes during the recent launch in June,” he said.
This means that there is still demand for quality properties found in strategic locations with good infrastructure as well as self-sustained and secure townships, noted Khor.
Although the current sales posted is less than 50 percent of its RM3.5 billion full-year target, it has to be noted that the group still has an unbilled sales of RM8.2 billion. Its earnings outlook is also anchored on 29 ongoing property projects.
“We are confident that the strategic list of launches lined up for the second half of the year, which ranges from affordable housing to exclusive niche developments, will have good response, keeping with the momentum of the take-up rate of recent launches,” said Khor.
In its financial results for Q2 2016, the group noted that total sales for the first seven months of 2016 stood at RM1.35 billion.
Notably, SP Setia registered a net profit of RM125.78 million for the second quarter ended 30 June 2016, with revenue at RM1.01 billion.
This takes cumulative six-month revenue to RM1.92 billion, while net profit is RM249.17 million. The group revealed that RM856 million of its RM1.35 billion sales came from the central region.
The eastern, northern and southern region registered a combined sales of RM140 million, while overseas sales stood at RM109 million.
It revealed that the sales secured within the Klang Valley are in line with the sales target of the group compared to the weaker sentiment seen in Sabah, Penang and Johor.
Ongoing projects that contributed to the sales include Setia Eco Park and Setia Alam in Shah Alam, Setia Eco Glades in Cyberjaya, Setia EcoHill in Semenyih and KL Eco City.
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email firstname.lastname@example.org