S P Setia Bhd posted a 39.46% year-on-year jump in net profit for the first quarter ended March 31, 2024 (1QFY2024) to RM77.33 million from RM55.45 million in 1QFY2023 on higher contribution from both its domestic business as well as its operations in Vietnam.

KUALA LUMPUR (May 16): Property developer S P Setia Bhd (KL:SPSETIA) posted a 39.46% year-on-year jump in its net profit for the first quarter of the year, as it recorded stronger revenue, driven by higher contribution from both its domestic business as well as its operations in Vietnam.

Net profit for the quarter ended March 31, 2024 (1QFY2024) rose to RM77.33 million from RM55.45 million in 1QFY2023, S P Setia's bourse filing showed, with revenue climbing almost 53% to RM1.48 billion from RM967.67 million. Earnings per share rose to 0.56 sen from 0.36 sen.

The group's main property development segment achieved a profit before tax (PBT) of RM180.8 million in 1QFY2024, up 38.6% from 1QFY2023, which it attributed to higher contribution from its Eco Xuan development project in Vietnam, supported by land bank management and higher contribution from domestic property development.

"The group’s wide range of investment properties and hotels had also contributed higher profit during this quarter, compared to the loss-making performance last year," S P Setia said in a statement. These are housed under its construction, investment holding and others segment, which contributed a PBT of RM422,000 to the group during the quarter, compared to a loss of RM14.47 million previously.

"Our first-quarter results are a testament to the robustness of our business model and the success of our strategic market expansions. We've seen growth across the board, and while we're looking ahead with positivity, we're conscious of the need to maintain a steady hand on the tiller," said S P Setia president and chief executive officer Datuk Choong Kai Wai.

Sales have remained strong, with a total of RM1.42 billion sales achieved in the quarter, the group said, mainly contributed by the southern and central region in Malaysia.

"Project completions, notably within Australia, have been particularly successful and point to the wisdom of our diversified approach," Choong said.

The group expects to continue its upward momentum with the launch of new projects with a combined gross development value (GDV) of RM146.2 million during the quarter, and favourable market uptake.

The group is "on track to meeting its RM4.4 billion sales target for the year", Choong added.

Shares in S P Setia closed two sen or 1.32% higher at RM1.53 on Thursday, giving the group a market capitalisation of RM7.25 billion. The counter has gained 73 sen or 91.25% year to date.