SP Setia Q2 net up 26.3pc

DEVELOPER SP Setia Bhd's (8664) net profit in the second quarter to April 30 2010 rose 26.3 per cent to RM51.2 million, backed mainly by sales of residential and commercial properties in the Klang Valley and Johor Baru.

In its filing to Bursa Malaysia yesterday, SP Setia said that ongoing projects which contributed to the group's profit and revenue included Setia Alam and Setia Eco-Park in Shah Alam, Setia Walk in Puchong and Setia Sky Residences in Jalan Tun Razak.

Contributors from its projects in Johor Baru were Bukit Indah, Setia Indah, Setia Tropika and Setia Eco Gardens.

Setia Pearl Island and Setia Vista were the main contributors in Penang.
Apart from property development, construction and wood-based manufacturing activities also contributed to earnings.

Second quarter revenue was RM409 million against RM352.1 million in the previous corresponding period.

As at May 31 this year, SP Setia's sales for the first seven months of the financial year ending October 31 2010 totalled RM1.4 billion with sale and purchase agreements signed.

"Based on the strong sales momentum, upbeat consumer sentiments, prudent but ready availability of mortgage financing, and macroeconomic factors that continue to be supportive and conducive for the property market in Malaysia, we are very confident of achieving our sales target of RM2 billion for the current financial year," it said.


-- by Business Times