KUALA LUMPUR: S P Setia Bhd, which swung back to profit in the financial year ended Dec 31, 2021 (FY21) with a net profit of RM284.36mil, has set a sales target of RM4bil in FY22.
“We have set our FY2022 sales target at RM4bil and intend to launch RM4bil worth of new products focusing primarily on landed residential projects,” president and CEO Datuk Choong Kai Wai said in a statement.
S P Setia said it recorded another year of unsurpassed sales performance of RM4.26bil in FY21 and outperformed its original sales target of RM3.8bil.
Its revenue stood at RM3.76bil, up 16.6% from RM3.23bil in FY20.
The developer has declared a final ordinary dividend of 0.65 sen per share as well as preferential dividends of 6.49% and 5.93% per annum, respectively, for its Islamic redeemable convertible preference shares A and B for the financial period.
S P Setia said the main contribution of its sales came from the central region with RM2.92bil, followed by RM556mil from the southern region while the international regions collectively registered sales of RM762mil.
“Notably, its residential properties in established townships in Klang Valley, such as Bandar Setia Alam and Bandar Kinrara garnered solid take-up rates in the final quarter of 2021.
“The government's move in heeding the rakyat's needs by extending the Home Ownership Campaign (HOC) to end-2021 also augured well for the group, where it managed to clear RM754mil worth of its completed inventories,” S P Setia said.
In 4Q21, S P Setia launched more landed properties totalling a gross development value (GDV) of RM729mil based on the continuous demand observed.
The first phase of the exclusive two- and three-storey semi-detached homes in Penang Island were among them. Priced above RM1mil per unit, the project has successfully obtained more than 80% take-up rate.
It said all the units in the Daintree Residence project in Singapore were sold out while Eco Lakes Vietnam, the residential properties with a combined GDV of RM133mil launched in 4Q21 garnered a 100% take-up rate.
“Despite the challenging landscape, we are heartened by the encouraging response from the market towards our products and counter-strategies," Choong said.
He added that the group would continue to leverage its digital platforms to reach out to its customers.
Moving into FY22, S P Setia anticipates gradual recovery to the Malaysian economy, underpinned by the continued increase in global demand and higher private sector expenditure.
As of Dec 31, 2021, S P Setia is anchored by 48 ongoing projects, effective remaining land banks of 7,237 acres with a GDV of RM122.4bil.
Its unbilled sales, which stands at RM10.2bil, will provide earnings visibility in the short to mid-term.