KUALA LUMPUR, Feb 27 — Malaysia’s leading property developer, SP Setia Bhd, is targeting property sales of RM5.65 billion this year, up 10 per cent, from the RM5.12 billion sales achieved in 2018, said president and chief executive officer Datuk Khor Chap Jen.
He said the target was achievable as market demand had improved coupled with the fact the company would launch four new projects this year.
“Last year, although the environment was challenging, we managed to achieve RM5.12 billion in sales which surpassed our initial target of RM5 billion.
“We also think that the market has actually bottomed out (where) the worst is over and the market is getting better,” he told reporters after a briefing on the company’s financial results here today.
Khor said 89 per cent of the total sales this year would be derived from local projects while the balance would come from overseas projects.
He said SP Setia planned to launch RM6.8 billion worth of properties this year, involving RM6.66 billion in local launches while international launches would comprise new phases in Eco Lakes and Eco Xuan in Vietnam amounting to RM139 million.
The local launches would comprise four new projects in Semenyih, Setia Alam, Salak Tinggi and Cyberjaya worth RM4.98 billion; coupled with the launch of new phases in the group’s established developments such as Setia Alam, Bandar Kinrara, KL Eco City and Setia Ecohill 2, he said.
In the financial year ended Dec 31, 2018, SP Setia recorded a lower net profit of RM670.96 million from RM993.7 million achieved in 2017 with revenue decreasing to RM3.59 billion from RM4.29 billion previously.
Of the RM5.12 billion sales achieved last year, local projects contributed RM4.12 billion or approximately 80 per cent while international projects contributed RM1.00 billion or approximately 20 per cent.
As at year-end, the group recorded unbilled sales in the pipeline of RM12.32 billion, had 45 ongoing projects and remaining land bank of 3,850.99 hectares with a gross development value of RM149.70 billion. — Bernama
