S P Setia net profit up 62.4% to RM62m on ongoing projects

KUALA LUMPUR: S P Setia Bhd's net profit rose 62.4% to RM62.03 million for its first quarter ended Jan 31, 2011, from RM38.19% a year ago on ongoing property development activities in the Klang Valley, Johor Bahru and Penang.

Its revenue swelled 42.6% to RM518.88 million from RM363.89 million, it announced to Bursa Malaysia on Thursday, Mar 17.

Meanwhile, the group's basic earnings per share rose to 6.1 sen from 3.76 sen a year ago and net assets per share rose to RM2.22 from RM2.15.

The key drivers of its stronger performance include 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; and Setia Pearl Island and Setia Vista in Penang.

S P Setia's construction and wood-based manufacturing activities also boosted its earnings, it added.

The group also chalked up record sales of RM737 million for the quarter, 21% higher than sales recorded a year ago.

Given its strong sales — for the first four months of the financial year ending Oct 31, 2011 (FY2011), the group's sales grew 25% to a record RM935 million from a year ago — it expects to achieve its FY2011 sales target of RM3 billion.

"The eagerly anticipated KL EcoCity (KLEC) project, with an estimated gross development value of RM6 billion, when launched later this year is expected to further contribute to the group's already 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 group is also working towards finalising the terms with the government for the land-swap deal which entails the exchange of 40.22 acres of land in Bangsar for a new integrated health and research complex which will be located on 55.33 acres of land in its Setia Alam development.

In addition, it is also working on getting approvals for launches of its recently-acquired local and international land banks.

S P Setia is confident of a "very positive" performance this year barring unforeseen circumstances.