According to SP Setia president and chief executive officer Datuk Khor Chap Jen(filepic), the group’s sales performance was satisfactory amid the current challenging market environment.

PETALING JAYA: SP Setia Bhd has revised its sales target for the year to RM3.5bil from RM4bil previously amid the continued weak sentiment in the Malaysian property market and the global uncertainty caused by Brexit.

According to SP Setia president and chief executive officer Datuk Khor Chap Jen, the group’s sales performance was satisfactory amid the current challenging market environment.

“The group recorded an admirable 100% take-up rate of RM272mil worth of landed properties launched in Setia Eco Templer in Selayang in May, while Setia EcoHill 2 at Semenyih achieved an encouraging 72% take-up rate for its Everna cluster semi-detached homes during the recent launch in June,” he said.

This indicates that the underlying demand for quality properties in strategic locations with good infrastructure as well as secure and self-sustained townships is still there, according to Khor.

While the current sales achieved is less than half of its full-year target of RM3.5bil, it is worth noting that the group has RM8.2bil in unbilled sales. Its earnings outlook is also firmly anchored on the 29 property projects that are ongoing.

“We are confident that the strategic list of launches lined up for the second half of the year, which ranges from affordable housing to exclusive niche developments, will have good response, keeping with the momentum of the take-up rate of recent launches,” Khor said.

In its latest financial results for the second quarter ended June 30, 2016 (Q2’16), the group noted that its total sales during the first seven months of the year amounted to RM1.35bil.

For Q2’16, SP Setia reported a net profit of RM125.78mil on the back of RM1.01bil in revenue.

This brings its cumulative six-month revenue for financial year 2016 to RM1.92bil, while its total net profit for the six months is RM249.17mil.

SP Setia said that out of its RM1.35bil of total sales achieved up until July, some RM856mil came from the central region.

The southern, northern and eastern region saw combined sales of RM140mil, while its overseas sales amounted to RM109mil.

On the local front, the sales secured in the Klang Valley are mainly in line with the group’s sales target as compared to a weaker sentiment in Johor, Penang and Sabah, it said.

Among the ongoing projects which contributed to the sales include Setia Alam and Setia Eco Park in Shah Alam, Setia EcoHill in Semenyih, Setia Eco Glades in Cyberjaya, KL Eco City and others.

As at June 30, it had a remaining landbank of 3,805 acres with an estimated gross development value of RM71.5bil.

The group has also declared an interim single-tier dividend of four sen per share for the quarter.