August 15, 2024 - $SPSETIA (8664.MY)$ shares fell 10.53% to RM1.36 on Thursday. The company released its 24Q2 financial results, reporting a net profit of RM310 million for the second quarter ended Jun 30, 2024.

Key Highlights

Profit increased: Net profit after tax has increased to RM404 million in YTD Q2 2024 compared to RM121 million in the same period last year, benefitting from successful strategic land deals in Johor and Klang Valley, as well as completion of S P Setia’s 50% equity stake disposal in Taman Ikan Emas, Cheras partnership redevelopment project.

52% of FY2024 sales target achieved, launches phasing underway: With RM2.30 billion in sales driven by robust industrial segment’s performance in the Central region and favourable demand conditions in the Southern region, the remaining phases of launches are in the pipeline progressively throughout the rest of the year.

Successful De-gearing strategies: From RM10.1 billion borrowings in Q4 2023, it has declined significantly by RM700 million within 6 months to RM9.4 billion as of Q2 2024. Net gearing ratio has consistently strengthened over the past few quarters to 0.41x per Q2 2024, compared to 0.49x in Q4 2023 due to the effectiveness of the Group’s debt management and capital allocation strategies.

Steady progress of inventories clearance: Achieved RM244 million reduction of stocks compared to Q4 2023 level, representing ~15% clearance progressively taking place through a concerted effort throughout the Group.

Setia Brand refresh – “Shaping Spaces That Shape Us All": In its 50th year, in honouring decades of excellence, S P Setia celebrates its enduring legacy and unwavering commitment to quality and innovation in real estate development with new marketing campaigns aimed to enhance future sales.