S P Setia posts RM108m PBT in 1QFY2026, cuts borrowings by RM500m as deleveraging gains pace

PETALING JAYA (May 20): S P Setia Bhd posted a profit before tax (PBT) of RM108 million and revenue of RM826 million for the first quarter ended March 31, as the group continued its debt reduction drive, trimming borrowings by RM500 million and improving its net gearing ratio to 0.31 times from 0.33 times at end-2025.

It said, in a statement, that net profit after tax came in at RM58 million, lower quarter-on-quarter, primarily due to fewer land sale transactions and unrealised foreign exchange losses.

Secured sales for the quarter reached RM555 million, with domestic developments accounting for 90% or RM500 million and international projects contributing the remaining RM55 million or 10%. Within the domestic segment, the Central region led with RM317 million, followed by the Southern region at RM174 million.

S P Setia president and CEO Datuk Zaini Yusoff said the quarter underscores the strength of the group's operating model and disciplined execution.

"As we navigate a dynamic external environment, we remain focused on delivering quality developments, progressing our long-term growth strategy in catalytic townships and eco-industrial parks, and advancing key initiatives in Penang and Vietnam," he added.

On the industrial front, progress is being made at the Setia Fontaines industrial park in Penang following rezoning approval on Oct 30, 2025. Internationally, Setia Edenia within the EcoXuan township in Ho Chi Minh City, Vietnam remains on track for completion in 2027.

The group flagged ongoing monitoring of the US-Iran conflict since late February, noting near-term exposure is manageable given limited exposure from existing construction contracts and no significant slowdown in underlying demand.

Rising construction costs may influence the timing and structuring of new project launches, it said.

Notwithstanding the external headwinds, S P Setia maintained its FY2026 sales target of RM4.6 billion, supported by planned new launches across the central, southern and northern regions as well as on the international front.

The group said it is transitioning from a traditional owner-developer to an integrated real estate player, aimed at building more resilient and sustainable income over the long term.

..........

EdgeProp brings you another month of data-driven insights, exclusive interviews, and market commentaries. Subscribe now for your free copy!