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PETALING JAYA (Aug 19): S P Setia Bhd posted a net profit attributable to shareholders of RM98.06 million for the second quarter ended June 30, 2026 (2QFY2026), broadly stable against RM99.80 million a year earlier, despite lower revenue.
In a Bursa Malaysia announcement on Wednesday (Aug 19), the property developer said revenue fell 13% to RM821.39 million from RM943.73 million, while profit before tax (PBT) eased 2.7% to RM190.40 million from RM195.67 million. Basic earnings per share stood at 1.95 sen, compared with 1.99 sen previously.
In a separate press release on Wednesday, S P Setia said it secured RM864 million in sales during the quarter, with domestic developments contributing RM784 million, or 91%. The Central and Southern regions collectively accounted for about 99% of domestic development sales.
This brought first-half sales to RM1.42 billion, with domestic developments contributing RM1.28 billion, or 90%, and international developments accounting for RM140 million.
The property development segment’s revenue fell 14% to RM772.38 million from RM892.76 million, primarily due to a RM115 million reduction in land-sale revenue. Development revenue otherwise remained broadly stable, supported by progress across the group’s domestic projects.
Property development PBT, however, rose 3.7% to RM193.25 million from RM186.27 million, supported by a one-off reversal of foreseeable-loss provisions following the realisation of low-cost land disposals.
For the six months ended June 30 (1HFY2026), net profit attributable to shareholders fell 22.6% to RM129.18 million from RM166.82 million, while revenue declined 3.9% to RM1.65 billion from RM1.71 billion. PBT decreased 11.6% to RM298.18 million from RM337.14 million.
The property development segment recorded first-half revenue of RM1.55 billion and PBT of RM299.42 million, compared with RM1.61 billion and RM319.60 million, respectively, a year earlier.
The company said the lower segment revenue mainly reflected the non-recurrence of contributions from Australian projects following the completion of key project handovers in prior years. Lower PBT mainly reflected the absence of material land-sale profit contributions, partly offset by one-off reversals of employee-benefit and foreseeable-loss provisions and improved performance from Battersea Power Station.
The group said borrowings were reduced by RM209 million during the quarter, while net gearing stood at 0.31 times.
S P Setia president and CEO Datuk Zaini Yusoff said the results reflected steady sales performance, lower borrowings and disciplined management of costs and cash flow.
In Penang, the group said it broke ground in June on the 509-acre Setia Fontaines Industrial Park in Bertam, which is targeted at advanced manufacturing, digital infrastructure and high-technology industries.
It also signed a memorandum of collaboration with the Northern Corridor Implementation Authority to explore green electricity supply for the industrial park under the Corporate Renewable Energy Supply Scheme, and a memorandum of agreement with Lembaga Perumahan Negeri Pulau Pinang to develop 640 affordable homes.
Meanwhile, Setia Edenia at EcoXuan in Ho Chi Minh City, Vietnam, remains on track for completion in 2027.
No dividend was declared for ordinary shares for the six-month financial period ended June 30.
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