KUALA LUMPUR: SP Setia Bhd recently announced outstanding financial results for FY24, demonstrating robust financial strength and strategic growth across its operations.
SP Setia reported profit before tax exceeding RM1 billion and profit after tax of RM631 million for FY24, its highest profit in the past five years. This strong performance has allowed it to double its dividend to shareholders, signifying a commitment to delivering value and confidence in its prospects.
SP Setia surpassed its sales target for the financial year ended Dec 31, 2024, achieving a commendable RM5.02 billion in sales against a target of RM4.4 billion, accomplished in a challenging economic environment. Revenue recorded at RM5.29 billion in FY24, a 21% increase from last year. Additionally, S P Setia has successfully reduced its borrowings by RM1.6 billion, resulting in a lower net gearing ratio of 0.35x from 0.49x for the period in review, underscoring its effective execution of debt reduction strategies.
The group’s sales breakdown reveals that local projects contributed RM4.24 billion, accounting for approximately 84% of total sales, while international projects added RM785 million. SP Setia’s long-held reputation in townships and residential developments continues to be the group’s mainstay, contributing consistently to its performance.
In the Central region, SP Setia is leveraging the unique geographical advantage of its two cross-development segments located just 4km apart: the maturing crown jewel integrated residential township Bandar Setia Alam and Setia Alaman Industrial Park. The dynamic road connectivity and ready infrastructure serving the two developments are key catalysts to the new frontier in SP Setia’s industrial portfolio growth.
Unleashing value in the Southern region, SP Setia continues to drive profitability growth from the strong residential and commercial properties demand in Johor while maintaining the momentum on the group’s industrial expansion plans.
Up North, SP Setia’s flagship Northern township – Setia Fontaines in Bertam, Penang – is actively expanding the group’s industrial footprint by the proposed rezoning at least 300 acres for industrial development. Given its proximity to the Kulim Hi-tech Park, this strategic move aligns with the increasing demand for industrial land in the northern region of Peninsular Malaysia, which is expected to bring in positive spillover effects in the neighbouring residential and commercial developments.
“Our performance in FY24 showcases SP Setia’s resilience, strategic foresight, and operational excellence. The doubling of our dividend is a testament to our strong financial standing and commitment to maximising shareholder value.
“We are excited about the future and the growth opportunities that lie ahead,” said SP Setia president and CEO Datuk Choong Kai Wai.
The group has a robust sales pipeline supported by 42 ongoing projects. Additionally, the group boasts a remaining land bank of 5,451 acres and an effective remaining GDV of RM128.59 billion.
SP Setia’s international ventures in Vietnam and Australia are on a growth trajectory, and both markets are expected to contribute to overall group performance.
Atlas Melbourne, which was recently launched in Q4’24, has achieved an encouraging take-up rate.
The group is ready to surge forward with a RM4.8 billion sales target for 2025.
