Highlight SP Setia 1Q net profit rise 3.9% to RM97m, revenue falls

Highlight SP Setia 1Q net profit rise 3.9% to RM97m, revenue falls
Business & Markets 2014
Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com
Thursday, 20 March 2014 14:30

KUALA LUMPUR (Mar 20): SP Setia Bhd reported a net profit of RM96.8 million for its first quarter ended January 31, 2014 (1QFY14), up 3.9% year-on-year from RM93.2 million a year earlier.

However, revenue fell to RM721.6 million from RM734.9 million.

According to SP Setia's statement to the exchange, the group’s higher profit was attributed to a gain from the disposal of an investment property.

SP Setia said revenue for the quarter was mainly derived from its construction segment as property development top line fell 3%.

“Revenue for the current quarter is mainly derived from the construction of a concession asset in Penang and also the Jabatan Keretapi Negeri Sabah building in Sabah,” said SP Setia.

The group said profit from the construction work would not be significant as it expected to derive the benefits from subsequent development activities in Penang and Sabah.

Going forward, SP Setia said it would focus on the delivery of its projects. SP Setia said its plan came amid a challenging landscape.

"Demand has dampened considerably for higher-priced properties and cost pressures are rising. The industry also continues to face shortages of skilled labour.

“Given the large pipeline of properties to be completed as a result of the extremely strong sales over the last two to three years, execution and timely delivery will remain the group’s key focus areas for the rest of FY2014,” said the group.