By Sharen Kaur
SP Setia Bhd expects record net profits for the next three years, led by its current unbilled sales of RM9.64 billion, which are at the highest level, and new launches.
For the fiscal year 2013, SP Setia achieved sales of RM8.24 billion, which were 50 per cent above its sales target of RM5.5 billion and doubled 2012's figure of more than RM4 billion.
This led to the group recording a pre-tax profit of RM570.34 million on a RM3.06 billion revenue for the full year. The profit and revenue went up 0.5 per cent and 21 per cent, respectively.
"This is the best ever year for SP Setia," said its president and chief executive officer Tan Sri Liew Kee Sin here yesterday.
SP Setia has 27 ongoing projects worth a combined RM31 billion.
"Our profit before tax had marginally increase because earnings from the projects in Melbourne and London can only be recognised upon completion. Cost is incurred, but not profits," he said.
Liew expects a jump in pre-tax and net profits from 2016 onwards, as contribution from the London and Australian projects flows through.
However, the challenge would be to keep costs low, he said.
There is cost pressure due to a reduction in petrol subsidies this year and the electricity tariff hike next year.
"We need to manage our profits," he added.
Liew said SP Setia will be more prudent when it comes to new property launches.
He is expecting the property market to slow down next year as the government raises the real property gains tax, among others.
"We have overseas projects, which will even out any troubles here. Locally, we need to see the impact of new measures before we do any launch," he said.
SP Setia Bhd expects record net profits for the next three years, led by its current unbilled sales of RM9.64 billion, which are at the highest level, and new launches.
For the fiscal year 2013, SP Setia achieved sales of RM8.24 billion, which were 50 per cent above its sales target of RM5.5 billion and doubled 2012's figure of more than RM4 billion.
This led to the group recording a pre-tax profit of RM570.34 million on a RM3.06 billion revenue for the full year. The profit and revenue went up 0.5 per cent and 21 per cent, respectively.
"This is the best ever year for SP Setia," said its president and chief executive officer Tan Sri Liew Kee Sin here yesterday.
SP Setia has 27 ongoing projects worth a combined RM31 billion.
"Our profit before tax had marginally increase because earnings from the projects in Melbourne and London can only be recognised upon completion. Cost is incurred, but not profits," he said.
Liew expects a jump in pre-tax and net profits from 2016 onwards, as contribution from the London and Australian projects flows through.
However, the challenge would be to keep costs low, he said.
There is cost pressure due to a reduction in petrol subsidies this year and the electricity tariff hike next year.
"We need to manage our profits," he added.
Liew said SP Setia will be more prudent when it comes to new property launches.
He is expecting the property market to slow down next year as the government raises the real property gains tax, among others.
"We have overseas projects, which will even out any troubles here. Locally, we need to see the impact of new measures before we do any launch," he said.
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