S P Setia Burdened By Battersea Project Financial Losses
S P Setia Burdened By Battersea Project Financial Losses
S P Setia Berhad is grappling with increasing financial challenges, as revealed in its recent earnings report, despite achieving higher-than-expected revenue through land sales. The company's net profit for the first half of 2024 (1H24) surged significantly due to successful land disposals, yet the persistent losses from its joint venture in the Battersea Power Station project have raised concerns about its future performance.
S P Setia Berhad正在应对越来越多的财务挑战，最近的财报显示，尽管完成了比预期更高的土地销售收入，但公司的净利润在Battersea Power Station项目的持续亏损下，仍然呈现出增长的瓶颈。1H24期间成功的土地处置使公司的净利润大幅飙升，然而与Battersea Power Station合资企业的不断亏损引起了对公司未来业绩的担忧。
Analysts maintained a "BUY" recommendation on S P Setia with a target price of RM1.72, representing a 13% upside. However, they cautioned that the company's profitability was largely propped up by one-off land sales, which might not be sustainable in the long term. The investment firm also highlighted the growing losses from the Battersea Power Station project, which contributed to a gloomy outlook for the company's core property development activities.
分析师维持对S P Setia的“买入”建议，目标价为1.72马来西亚令吉，上升13%。但他们警告说，公司的盈利主要是靠一次性土地销售扶持的，这种情况可能在长期内不可持续。投资公司还强调了Battersea Power Station项目不断增加的亏损，这对公司核心的房地产开发活动的前景造成了乌云。
The second quarter of 2024 (2Q24) saw S P Setia's revenue climb due to a significant land disposal in Taman Pelangi Indah, valued at RM564 million. This sale led to a substantial boost in the company's earnings, pushing the quarter's earnings before interest and tax (EBIT) margin to an impressive 39.9%, up from 18.9% in the first quarter. Despite this, the company's joint venture with Battersea Power Station recorded a staggering loss of RM101 million in 2Q24, further exacerbated by an income guarantee agreement for an office tower within the development.
2024年第二季度，S P Setia的营业收入因Taman Pelangi Indah的一次重大土地处置而上升，价值RM 56400万。这项交易推动了公司收益的大幅增长，使季度息税前利润（EBIT）率大幅提高至39.9%，高于第一季度的18.9%。尽管如此，公司与Battersea Power Station的联营企业在2Q24亏损了RM 10100万，在开发过程中一座办公塔楼的租赁保证协议进一步加剧了亏损。
The Battersea project, which was supposed to be a landmark development, has become a financial burden due to low occupancy rates and high-interest rates in the UK. S P Setia's management acknowledged that the project might continue to post losses in the coming quarters, compounding investor concerns.
Battersea项目原本应是一项标志性的开发项目，由于英国低入住率和高利率的影响，它已变成了一项财务负担。S P Setia的管理层承认该项目在未来几个季度可能继续亏损，进一步加剧了投资者的担忧。
Looking ahead, the company is on track to meet its sales target of RM4.4 billion for the year, bolstered by its land monetisation strategy. However, the reliance on land sales to drive earnings has raised questions about the sustainability of its growth, especially as its core property development revenues have shown signs of weakness.
展望未来，公司正在通过土地变现策略实现44亿马来西亚令吉的销售目标，并保持了较高的增长。然而，依靠土地销售推动收益的做法引发了关于其增长可持续性的质疑，特别是在其核心房地产开发收入出现疲软迹象的情况下。
In addition to the challenges posed by Battersea, S P Setia's unsold inventory remains a concern, with RM1.5 billion worth of properties still on the market, including significant portions from Aspire Tower in KL Eco City and Uno Melbourne. The company's gearing has improved slightly, dropping to 0.44x from 0.50x in FY23, but it remains higher than its peers, which could expose the company to further financial pressures in a rising interest rate environment.
除了Battersea所带来的挑战，S P Setia的未售出库存仍然是一个问题，市场上有着价值15亿马来西亚令吉的房地产，其中包括KL Eco City的Aspire Tower和Uno Melbourne的重要部分。公司的杠杆率略有改善，由FY23的0.50x下降到0.44x，但仍高于同行业，这可能使公司在利率上升的环境中面临更大的财务压力。
Despite these challenges, the company's management remains optimistic, with upcoming land sales in Setia City and Taman Pelangi Johor expected to further support earnings in the second half of 2024 (2H24). However, the question remains whether these one-off gains can offset the ongoing struggles in its core operations, particularly the Battersea project.
尽管面临这些挑战，公司管理层仍然保持乐观的态度，未来在Setia City和Taman Pelangi Johor的土地销售有望进一步支撑2024年下半年的收益。然而，问题仍然在于这些单次的收益是否能够抵消其核心业务的持续亏损，特别是Battersea项目。