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Thursday, December 8, 2011

SP Setia targets RM4b sales in FY2012

SP Setia Bhd targets RM4 billion sales in its financial year ending Oct 31, 2012, driven by both local and foreign property sales.

President and CEO Tan Sri Liew Kee Sin said the group achieved historic highs in both sales and profits for its financial year ended Oct 31, 2011.

The group's full-year sales for FY2011 of RM3.29 billion represents a 42 per cent increase from its previous record high of RM2.31 billion set in FY2010.

The group's profit after tax for FY2011 of RM322.4 million also increased 28 per cent from RM251.8 million in the previous year, the highest ever profit achieved by SP Setia for a financial year.

"In spite of the difficult economic environment, we are confident we can achieve the target as we are able to deliver products that people want to buy," he said at a media briefing on SP Setia's financial results.

Liew said sustained demand for properties in the group's existing projects in the Klang Valley, Johor Baharu and Penang will continue to underpin the group's sales performance in FY2012.

FY2012, he said, will also see the launch of a slew of new projects which will enable the group to tap into new sources and corridors of growth to expand its market share.

"These include Setia Eco Glades in Cyberjaya and Setia Business Park II in Tebrau Johor, and the Group's first high-rise luxury integrated residential and commercial project in JB City Centre called 88 Setia," he said.

Over in East Malaysia, the group will shortly be launching its maiden project in Sabah, Aeropad -- an integrated commercial development located in Kota Kinabalu.

On the international front, Fulton Lane in Melbourne is also doing well, and the group targets to launch the first development in Singapore to be called 18 Woodsville during the first half of 2012, he said.

"In Vietnam, both Eco Lakes and EcoXuan, the group's second project, are expected to help augment sales," he said. SP Setia has proposed a final dividend of nine sen per share.

Together with the interim dividend of five sen per share, total dividend for the year works out to 14 sen per share, representing a payout of approximately 59 per cent of the group's net profit.

Liew said the group is also keen on the London property market and is looking at opportunities.

As for the Singapore property market, he said, the group's property project there is focusing on locals who are upgrading to better homes.

On Sept 28, 2011, SP Setia received a notice of take-over offer from Maybank Investment Bank Bhd (Maybank IB) on behalf of Permodalan Nasional Bhd (PNB) in respect of PNB's obligation to extend a take-over offer.

On Oct 14, the Securities Commission (SC) approved the takeover offer by PNB. On Dec 2, 2011 Maybank IB, on behalf of PNB, submitted an application to the SC in relation to the proposed formalisation of certain incentives and management rights relating to the management and general conduct of business of the SP Setia group of companies to be entered into between PNB, Liew and SP Setia Bhd.

The proposed arrangement and the offer document is pending the approval of the SC. Liew said the group is waiting for the SC's clearance.

The management agreement submitted to the SC is a win-win plan for everybody in PNB and SP Setia, he added.

By Bernama

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