PETALING JAYA: SP Setia Bhd's net profit for the second quarter ended June 30, 2022 increased 6.59% to RM80.09 million from RM74.81 million in the same period last year, due mainly to foreign exchange gain.
Revenue for the quarter decreased to RM1.02 billion from RM1.08 billion in the previous year.
For the six months period, its net profit fell 1.63% to RM147.59 million from RM150.04 million previously while revenue dropped 11.68% to RM1.89 billion from RM2.14 billion.
In the first half of the year, the group secured total sales of RM1.67 billion, mainly from local projects, which contributed RM1.38 billion or 83%, while the remaining RM294.0 million came mainly from international sales.
SP Setia president and CEO Datuk Choong Kai Wai (pix) said RM272 million of completed inventories were sold, and RM559 million of bookings were secured during this period.
“Our key focus remains steadfast on the swift conversion of the latter into sales,“ he said in a statement today, adding that it is on track to hit the RM4 billion sales target set for the year. Choong said potential buyers are still seeking landed properties in established townships despite challenges faced by the real estate industry due to elevated building material costs, labour shortage, interest rate upcycle and inflationary pressure.
“The recently announced 100% stamp duty exemption for first-time home buyers of properties priced RM500,000 and below through the i-Miliki will assist in expediting the property market's recovery,” he added.
SP Setia has partnered with Tenaga Nasional Bhd to provide electrical vehicle port and renewable energy solutions to potential home buyers to promote green energy and reduce carbon emissions.
Choong said the group will continue to monitor the current challenges disrupting the world economy.
“These two years of disruptions have enabled us to explore new areas of development. One of these diversifications is in the medical service industry, where we have announced our collaboration with Qualitas Medical Group Sdn Bhd to set up an ambulatory care centre in Setia Alam as part of our revenue diversification strategy,“ he added.
The group has 47 ongoing projects with a remaining landbank of 7,042 acres. Gross development value was at RM120.88 billion as of June 30, 2022, backed by unbilled sales totalling RM8.71 billion.