S P Setia achieved RM5.10 Billion in Sales, 21% above target in FY2023

1 Mar 2024

Kuala Lumpur – S P Setia Bhd (“S P Setia” or “the Group”) has achieved a remarkable feat by surpassing its sales target amid the challenging economic climate. In FY2023, the Group recorded total sales of RM5.10 billion – outperforming its RM4.2 billion target – which is a testament to S P Setia’s resilience in navigating market headwinds.

A brief snapshot of Q4FY2023 indicates that the driving force behind S P Setia’s sales is its local projects, accounting for a significant portion of revenue with RM4.41 billion, or approximately 86% of total sales. The Central region proved crucial for the Group, contributing RM3.30 billion in sales, followed by the Southern region of RM860 million. Additionally, the Northern and Eastern regions made valuable contributions totalling RM247.0 million.

The Group further reduced its borrowings by RM1.30 billion, bringing down the net gearing ratio to 0.49x from 0.57x in FY2022, enabling better capital optimisation and deployment across the development pipelines for future growth. The Group achieved 17% higher profit before tax of RM656 million in FY2023 compared to RM559 million in FY2022, while persisting through the challenges in the operating environment as fluctuations of foreign exchange and interest rates put pressures on the Group’s bottom line.

For the financial year ended 31 December 2023, the Board of Directors of the Company has declared dividend of 1.34 sen per share.

The Group’s sales success is supported by multiple factors, including its robust sales pipeline anchored by 41 ongoing projects, with a remaining land bank of 6,311 acres and an effective remaining GDV of RM119.74 billion.

Moving forward, President & Chief Executive Officer Datuk Choong Kai Wai expressed confidence in the overall prospects for FY2024. “We remain optimistic in the Group’s trajectory this year, with key focuses in accelerating township developments, large-scale industrial developments and strengthening our international presence,” said Choong.

The Group is optimistic about the real estate sector, fuelled by catalysts such as the Malaysia My Second Home (MM2H) Visa Liberalisation Plan and Stamp Duty Exemption for first-time buyers, with the country’s GDP expected to grow between 4% and 5% this year.

Upcoming plans in Vietnam, Australia and the industrial segment

In FY2024, S P Setia will continue with its development plans in Vietnam and Australia, where for the latter, the Group expects to maintain the momentum of its existing presence in Australia, which will be strengthened through the development of the newly-acquired Sydney land.

Among other key developments that will contribute and propel the Group’s growth include the Central region – industrial offerings in Setia Alaman Industrial Park, Klang, Selangor, and the two residential towers by Setia Federal Hill in Jalan Bangsar, Kuala Lumpur.

In the Southern region, S P Setia is banking on its growth momentum with positive spillover effects from the Special Economic Zone incentives, Johor-Singapore RTS link, the KL-Singapore High Speed Rail integrated infrastructure projects, and strategic collaborations and optimisation of the Group’s overall landbank.

S P Setia remains positive in its outlook for FY2024, leveraging its strength and diversified portfolio to achieve a sales target of RM4.40 billion.


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