PETALING JAYA: S P Setia Bhd, which is on track to achieve its sales target of RM4.2bil for its financial year ending Dec 31, 2023 (FY23), has secured total bookings of RM470mil as of June 30.

In a filling with Bursa Malaysia, the property developer said its key focus is to convert the bookings into sales.

“With 44 ongoing projects and unbilled sales totalling RM6.82bil as of June 30, there is earnings visibility in the short to mid-term,” said S P Setia, which has a remaining land bank of 6,870 acres with a total gross development value (GDV) of RM125.77bil.

The group is optimistic of achieving satisfactory performance for its FY23, having recorded sales of RM2.56bil for the first half of 2023 (1H23), representing over 60% of the full year sales target.

Out of the sales, 86% or RM2.19bil was contributed by its local projects.

According to S P Setia, the central region generated RM1.49bil in sales, supported by RM589mil from the southern region and RM74mil from the northern region, while the remaining sales were contributed by its international projects.

President and chief executive officer Datuk Choong Kai Wai, in a statement, said the group would continue to focus on delivering quality developments and sustainable solutions, and essentially move towards a lighter asset structure which is inline with its long term vision.

“We will continue to focus on delivering quality developments and sustainable solutions, while continuing our long-term plan to move towards a lighter asset structure and leveraging on our effective remaining land bank of 6,870 acres with a total GDV of RM125.77bil.

“We remain confident in achieving our targets for this financial year,” he stated in the statement.

S P Setia is committed to monetising non-strategic land and divesting non-core assets.

Notably, within the last couple of months, the property developer has proposed to dispose of 500 acres in Semenyih, Selangor, and eight more parcels of land measuring 959.7 acres in Tebrau, Johor, for a total consideration of RM940mil.

“The revenue generated from the disposal of land will enable the group to strengthen its financial position, reduce gearing levels and pursue future growth opportunities,” it said in the statement.

For its second quarter ended June 30 (2Q23), S P Setia reported a net profit of RM43.06mil, down from RM80.09mil in the previous corresponding quarter.

Earnings per share fell to 1.06 sen from 1.97 sen in the comparative quarter. Revenue for the quarter contracted to RM942.72mil from RM1.02bil in 2Q22.

The group said the weaker performance was mainly due to the property development segment, which recorded lower revenue and profit due to lower contributions from its Singapore and the central region operations.

The segment was also impacted by higher financing costs from the higher interest rates, unfavourable foreign exchange movement and a higher share of loss from joint ventures.

For 1H23, S P Setia recorded a net profit of RM98.51mil on revenue of RM1.91bil against a net profit of RM147.59mil and revenue of RM1.89bil in 1H22.