S P Setia 1Q net profit up 62% to RM62m

KUALA LUMPUR: S P Setia Bhd's net profit for the first quarter ended Jan 31, 2011 jumped 62% to 62.04 million from RM38.19 million a year ago, on the back of a 43% increase in revenue to RM518.88 million, due mainly from its property development activities in the Klang Valley, Johor Bahru and Penang.

It said on Thursday, March 17 earnings per share were 6.10 sen while net assets per share was RM2.22. The net profit for the period was arrived at after expensing about RM6 million for employee share options launched in May 2009.

S P Setia said the ongoing projects which contributed to the results included Setia Alam and Setia Eco-Park at Shah Alam, Setia Walk at Pusat Bandar Puchong, Setia Sky Residences at Jalan Tun Razak, Bukit Indah, Setia Indah, Setia Tropika and Setia Eco Gardens in Johor Bahru, Setia Pearl Island and Setia Vista in Penang.

Apart from property development, the group’s construction and wood-based manufacturing activities also contributed to the earnings achieved, it said.

S P Setia said its sales for the first quarter of FY2011 totalled RM737 million and were its highest ever sales recorded in a single quarter.

“As at Feb 28, 2011, the group’s sales for the first four months of the financial year totalled RM953 million – another new record and a 25% increase from the corresponding period last year. The group is therefore well on-target to achieve and deliver its FY2011 sales target of RM3 billion,” it said.

On its prospects, the company said the KL EcoCity project (KLEC), with an estimated gross development value of RM6 billion, when launched later this year was expected to further contribute to its strong sales.

“Management is confident that the meticulous planning and preparatory steps taken so far will enable KLEC to fulfil its potential as a showcase development and act as a key catalyst that will transform and enable the group to sustain sales at a high level,” it said.

The company said it would also focus on finalising terms with the government for the land-swap deal involving the exchange of 40.22 acres of land in Bangsar for a modern new integrated health and research complex to be located on 55.33 acres of land in the Group’s flagship Setia Alam development.

S P Setia said that barring unforeseen external shocks, it was optimistic that its prospects remained positive in FY2011.

By The EDGE Malaysia