KUALA LUMPUR (Aug 23): SP Setia Bhd's second quarter net profit rose 77% year-on-year to RM442.74 million from RM250.57 million, on increased revenue due to sales of completed properties and a one-off provisional fair value gain of RM343.8 million.

In a statement to Bursa Malaysia today, SP Setia said the fair value gain was due to the remeasurement of SP Setia's existing equity stake in Setia Federal Hill Sdn Bhd, which has now become a wholly-owned subsidiary of SP Setia. According to SP Setia, Setia Federal Hill was previously a joint venture entity of the group.

SP Setia said revenue rose to RM925.97 million in the second quarter ended June 30, 2018 (2QFY18) from RM866.35 million a year ago. For 1HFY18, SP Setia said net profit climbed to RM504.23 million from RM362.68 million a year earlier, although revenue was lower at RM1.58 billion from RM1.89 billion in the previous year.

"For 1HFY18, the group secured sales of RM2.11 billion. Local projects contributed RM1.41 billion, which represented two-thirds of the total sales while international projects contributed RM705.3 million or one-third of the total sales.

"Given the planned pipeline of launches, the sustained momentum and the sales achieved to-date, the group remains positive of achieving the sales target of RM5 billion for the current financial year," SP Setia said.