KUALA LUMPUR, May 12 — SP Setia Bhd posted a pre-tax profit of RM194.3 million for the first quarter ended March 31, 2016 on the back of a RM908.5 million revenue.
President and Chief Executive Officer Datuk Khor Chap Jen said the revenue was driven by sales of existing projects, as well as, new launches including the 3-storey terrace houses and 3-storey linked semi-detached houses in Setia Alam, Selangor, which has a gross development value (GDV) of RM128 million.
“Both achieved good take up rates of 86 per cent, indicating that underlying demand is still strong,” he said in a statement Thursday.
Moving forward, he said while recognising the challenging property market environment, SP Setia remained resilient with its diversified range of new launches, ranging from affordable to up-market landed properties and apartments worth RM4.7 billion in strategic locations to be launched in the second quarter onwards.
He said the company had also identified approximately 13 phases with a GDV of RM3 billion to be rolled out under the Setia 10:90 scheme as part of the sales initiative for the financial year 2016.
“We are confident that the group is on track to achieve our RM4 billion sales target by December,” he added.
The Setia 10:90 scheme requires potential buyers to pay 10 per cent of the house value at the initial stage of the purchase but monthly installment would only start after gaining possession of the property.
Khor said the company’s unbilled sales of RM8.6 billion, as of March 31, 2016, would yield good profit visibility for SP Setia and augur well with the challenging market conditions.
“With the company’s strong brand name and a large pipeline of unbilled sales, prospects remained strong with execution and timely delivery being SP Setia’s key focus areas for the coming years,” he added.