S P Setia confident of meeting RM3b sales target in 2011

KUALA LUMPUR: S P Setia Bhd is confident that its 2011 sales target of RM3 billion would be met after the company notched up sales of RM1.66 billion in the first seven months of the year.

The company’s net profit for the second quarter ended April 30, 2011 surged 80% to RM92.22 million from RM51.21 million a year earlier, due including to gain from the disposal of an investment property.

Revenue for the quarter rose to RM496.75 million from RM409.07 million a year earlier. Earnings per share was 5.55 sen while net assets per share was RM1.78.

S P Setia declared a gross interim dividend of five sen per share in respect of the financial year ending Oct 31, 2011.

Reviewing its performance on Thursday, June 9, S P Setia its profit and revenue were principally derived from its property development activities carried out in the Klang Valley, Johor Bahru and Penang.

“Ongoing projects which contributed to the group’s profit and revenue 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, Setia Pearl Island and Setia Vista in Penang.

“Apart from property development, the group’s CONSTRUCTION [] and wood-based manufacturing activities also contributed to the earnings achieved,” it said.

On its prospects, the company said its second quarter sales was RM671 million, with a cumulative 6-months sales of RM1.41 billion.

It said this was its strongest ever second quarter and 6-months sales, eclipsing the previous highs achieved in the second quarter of FY2010 and 6-months FY2009 by 12% and 17% respectively.’

“Total sales of RM1.66 billion for the first seven months of the financial year has surpassed the group’s full-year sales achieved in every year of the Group’s history except for the RM2.315 billion recorded in FY2010.

“Based on the strong sales momentum for existing projects and the imminent launch of the group’s highly-anticipated KL EcoCity project, management is very confident that, barring unforeseen external shocks, the Group’s FY2011 sales target of RM3 billion will be met,” it said.