Friday 29 Mar 2024
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KUALA LUMPUR (Aug 13): SP Setia Bhd posted a net loss of RM141.55 million for the second quarter ended June 30, 2020 from a net profit RM114.07 million a year earlier, on the back of a slump in revenue to RM331.33 million versus RM1.34 billion previously.

In a bourse filing today, the property developer said loss per share for the quarter was 3.50 sen versus earnings per share of 2.85 sen.

For the six months ended June 30, SP Setia posted a net loss of RM113.09 million versus a net profit of RM189.05 million in the year-ago period, on the back of revenue of RM1.03 billion against RM2.20 billion previously.

In a separate statement, SP Setia said the loss during the first half of the year was largely due to a one-off impairment of RM145.9 million on completed inventories.

“Over the same period, the group secured sales of RM875 million.

“Local projects contributed RM702 million, which represented approximately 80% of the total sales whilst the remaining RM173 million or approximately 20% were contributed largely by international projects such as UNO Melbourne, Sapphire by the Gardens and Marque Residences in Australia as well as Daintree Residence in Singapore,” it said.

The firm said on the local front, sales were mainly from the central region with RM502 million, aided by RM127 million contribution from the southern region while the northern region contributed another RM73 million.

It said the total sales secured were also complemented by the concerted effort in clearing inventories where RM179 million worth of inventories were monetised during this period.

SP Setia president and chief executive officer Datuk Khor Chap Jen said in addition to the sales secured, as at July 2020, the group had also secured bookings of RM1.42 billion.

“The main focus will now be on the swift conversion of these bookings into sales,” he said.

Khor said since the Movement Control Order (MCO) and subsequent Recovery MCO were imposed to contain the Covid-19 pandemic, activity in terms of new launches and transactions has generally been slower in the residential market.

“More emphasis was placed on the clearing of inventories and the careful rationalisation of launches,” he said.

Khor said that looking ahead, SP Setia expects to pick up and ride on the momentum of the increase in real estate activities spurred by PENJANA initiatives.

“The group continues to perform resiliently in this current financial year backed by an unbilled sales totalling RM9.68 billion which will tide the group over for the next two years,” he said.

At midday break, SP Setia shed 0.64% or 0.5 sen to 78 sen, valuing it at RM3.16 billion.

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