KUALA LUMPUR (Sept 10): SP Setia Bhd's net profit for the third quarter ended July 31, 2015 (3QFY15) jumped 153% to RM261.79 million or 10.18 sen a share, from RM103.32 million or 4.12 sen a share a year ago.
The better profit was on the back of increased revenue and profit recognition from the sales achieved to date and the timely staged handovers of its maiden property project, Fulton Lane in Australia, that was accounted for based on the completion method.
Revenue for the quarter was up 81% at RM1.63 billion from RM902.66 million a year ago.
SP Setia acting president and chief executive officer Datuk Khor Chap Jen said in a statement today SP Setia's foray into the Australian market has borne well for the group amidst the current challenging property market.
"Fulton Lane's timely handover has helped the group to register strong revenue and profit recognition while the SP Setia Brand has begun to register with the Australian market as evident in our two sold out projects in Melbourne.
"We will continue to seek new ventures in the land Down Under to further expand our portfolios overseas," he added.
Khor said the group achieved RM744 million in sales during the third quarter, adding that as at July 31, 2015, the group's total sales for the first nine months of the current financial period totalled to RM2.54 billion.
The group's international projects also posted sales growth of 15.5% from the previous quarter, with sales from the Battersea Power Station Project and Singapore projects recording an improvement of 7.7% and 65%, respectively, he said, noting that local projects' sales of RM573 million contributed significantly to overall sales during the quarter.
SP Setia's cumulative nine-month net profit for FY15 (9MFY15) was at RM590.3 million or 23.14 sen a share, up 115% from RM274.37 million or 11.09 sen a share for 9MFY14.
Revenue for the period came in 62.7% higher at RM4.19 billion, from RM2.58 billion previously.
On the handing over of SP Setia's maiden project in Singapore, 18 Woodsville, the group said it is currently in progressive handover stages, having obtained the Temporary Occupation Permit (TOP) two months ahead of schedule.
Its second project, Eco Sanctuary, is on track for completion, it added.
Khor said 2015 has been not been an easy year for Malaysian developers given the volatility of the market, cooling measures imposed by the government and increasingly cautious financing environment adopted by banks.
However, the group is positive that adapting its product launches to meet the demand for mid-priced range and affordable homes within its own matured townships will create value for purchasers, he noted.
On prospects, the group said that with unbilled sales of RM9.9 billion, the Board is confident the group will continue to perform well in the remaining financial year.
SP Setia shares closed 1 sen or 0.32% lower at RM3.15 today, with a market capitalisation of RM8.2 billion.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)