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Wednesday, March 3, 2010

SP Setia revises 2010 sales target to RM2b

Property developer, SP Setia Bhd has revised its sales target for financial year 2010 to RM2 billion from an intial RM1.65 billion.

President and Chief Executive Officer Tan Sri Liew Kee Sin said the optimistic forecast was due to the RM608 million in sales recorded in the first quarter of the 2010 financial year.

Speaking to reporters after the company's annual general meeting today, he also said the confidence was based on the country's economic recovery following the 4.5 per cent fourth quarter gross domestic product (GDP) growth recorded last year.

For the financial year ended Oct 31, 2009 the company recorded its highest ever sales of RM1.65 billion, amidst challenging market conditions.
At present, the group has a landbank of 1,560 hectares in the Klang Valley, Johor and Penang with 10 ongoing projects.

According to Liew, the gross development value (GDV) of the landbank is estimated at RM26 billion and would enable the company to sustain itself for another 12 years.

He said for this year, the company would focus on its projects in Johor, the Klang Valley and Penang.

He disclosed that SP Setia expects its Vietnam operations to contribute RM100 million only.

SP Setia currently has two development projects, the Eco Lakes at MyPhuoc Industrial Park and EcoXanh in Ho Chi Minh City, Vietnam.

The company has chosen to go "slow and steady" in Vietnam, following the discouraging economic situation in that country, with a high interest rate of 16 per cent and the devaluation of its currency, the Dong.

However, Liew said the devaluation of the Dong did not affect SP Setia's projects there much, as the land already belonged to the company.

For the financial year ended Oct 31, 2009, SP Setia recorded RM1.4 billion in revenue with a profit before tax of RM231 million.This is against the RM1.47 billion in revenue and profit before tax of RM297.9 million previously.

By Bernama

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