KUALA LUMPUR: SP Setia Bhd's net profit for the first quarter (Q1) ended March 31, 2023 (FY23) fell 16.4 per cent to RM55.45 million from RM67.5 million a year ago.
This was despite the company achieving commendable sales of RM1.03 billion for the quarter.
However, revenue recorded an increase of 11.6 per cent to RM967.67 million from RM867.1 million.
According to the property developer, local projects contributed RM903.0 million or approximately 87 per cent of sales, while the international projects contributed RM130.0 million or about 13 per cent of sales.
On the local front, the secured sales were primarily from the central region with RM546.0 million, whereas the Southern region contributed RM285.0 million.
As a result, SP Setia registered higher earnings per share of 36 sen from four sen a year earlier.
"We are pleased with this achievement for the first quarter of this year.
"This achievement reflects improvement in a challenging macroeconomic environment and market sentiment," SP Setia president and chief executive officer Datuk Choong Kai Wai said in a statement today.
Choong added that with the commendable sales achieved for the first quarter, the company is optimistic that it will achieve the sales target of RM4.2 billion set for FY23.
Looking forward, Choong said SP Setia's performance is expected to remain resilient amidst prevailing market conditions and challenges.
He said the company continues to emphasise on offering new planned launches that meet the buyers' demand.
"The company has diversified into hospitality and industrial property sectors and is slated to further expand our presence in Australia and Vietnam given the strong growth potential prevalent in these markets.
"Cognisant of the various measures announced and implemented by authorities, we are prioritising on creating sustainable community developments by taking the cue of the current market demand and buyer's affordability levels," he added.
SP Setia has secured total bookings of RM512.0 million as of March 31, 2023, and remains steadfast on the swift conversion of these bookings into sales.
In FY23, the company plans to launch RM4.89 billion worth of local properties.
It said that overall, launches would be concentrated in the Central region with a gross development value (GDV) of RM3.83 billion.
Meanwhile, for 1Q23, SP Setia had launched a total GDV of RM683.0 million landed properties comprising mainly of double-storey terraces and semi-detached homes, whereby the take-up rate in well-sought-after and mature townships such as Bandar Kinrara was fully sold out.
During this period, other successfully launched projects were also observed in townships, such as Setia Eco Templer, Setia Alam Impian and Setia Eco Gardens.
Nevertheless, SP Setia said the recent overnight policy rate (OPR) hike by Bank Negara Malaysia (BNM) would help counter inflationary pressures that may burden new homebuyers.
Underpinned by an unbilled sales pipeline of RM7.17 billion, the company has 45 ongoing projects and a remaining land bank of 7,459 acres with a GDV of RM128.02 billion as of March 31, 2023.
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