KUALA LUMPUR (Feb 27): SP Setia Bhd said today that it achieved new property sales of RM5.12 billion in financial year ended Dec 31, 2018 (FY18). Local projects contributed RM4.12 billion or some 80% of sales, while international projects generated RM1 billion or approximately 20% of the total figure.
 
In statements to Bursa Malaysia today, SP Setia said the RM5.12 billion worth of new property sales surpassed its FY18 sales target of RM5 billion. SP Setia president and CEO Datuk Khor Chap Jen said in one of the statements that the sales achievement demonstrated the resilience and versatility of SP Setia in navigating the various headwinds in a subdued property market.

“With the versatile range of products offering that the group plans to launch, SP Setia has set a sales target of RM5.65 billion for FY2019, of which it expects that approximately 89% to be derived from local projects. This represents a sales growth of about 10% and will further solidify SP Setia’s position as the leading property developer in Malaysia,” Khor said.

For 4QFY18, SP Setia said in notes accompanying its financial results that net profit from continuing operations fell 63% to RM101.55 million, from RM276.03 million in the previous corresponding quarter. 

SP Setia said revenue from continuing operations dropped to RM1.02 billion, from RM1.33 billion, mainly due to lower property development revenue.

"(On the property development segment), the group achieved revenue of RM930.5 million and PBT of RM224.2 million in the current quarter. Both revenue and PBT for the current quarter is lower than the corresponding quarter in FY2017, partly due to higher volume of development phases completed and handed over in the last quarter of FY2017, and partly also Q4 FY2017 results benefited from the profit recognition on the completion of Phase 1 of Battersea Power Station. 

"Projects in the United Kingdom and Australia have to adhere to the completion method of accounting for revenue recognition, hence the completion of such projects will normally have material upside impact on the group’s profit," SP Setia said

For the full year, SP Setia posted a cumulative FY18 net profit from continuing operations of RM670.96 million, down from RM993.7 million a year earlier, while revenue from continuing operations declined to RM3.59 billion from RM4.29 billion. 

For 4QFY18, the group declared a final dividend of 4.55 sen per share, which brings full-year dividends to 8.55 sen per share. SP Setia said the cumulative FY18 dividends of 8.55 sen represents a payout ratio of 70.1%.