KUALA LUMPUR, Aug 20 (Bernama) — SP Setia Bhd’s second quarter (2Q) net profit ended June 30, 2025 (FY2025) dropped to RM99.8 million from RM295.03 million in the same quarter a year ago.
It said in a filing with Bursa Malaysia today that its revenue also eased to RM943.73 million against RM1.49 billion in 2Q FY2024, contributed mostly from local development.
Sales, however, recorded an uptick at RM1.186 billion versus RM883 million in 2Q FY2024, primarily from the group’s domestic projects.
For the six-month period ended June 30, 2025 (2H FY2025), net profit was lower at RM166.82 million, versus RM372.36 million in the same period last year.
Revenue also slid to RM1.71 billion compared with RM2.97 billion previously.
Sales were mainly from domestic projects at RM1.42 billion, representing 75 per cent of total sales, while the group’s international projects contributed RM480 million or 25 per cent of the total sales.
The group said it has continued to reduce its borrowings, with a current net-gearing ratio of 0.34 times, aligning with the group’s debt reduction strategies.
Meanwhile, following the Overnight Policy Rate (OPR) cut, it anticipated growth in the property development industry, particularly the residential segment.
On July 9, 2025, Bank Negara Malaysia (BNM) cut the OPR by 25 basis points to 2.75 per cent, its first rate cut in five years.
It said this would improve buyer affordability, reduce developers’ financing costs, and potentially boosting market sentiment amid heightened, prolonged global uncertainty as well as rising construction costs.
“Amid the current market challenges, our outlook remains cautiously optimistic while we look for opportunities to expand our presence across our targeted high-growth segments,” said SP Setia president and chief executive officer Datuk Choong Kai Wai.
Moving forward, the group said it would continue to accelerate its catalytic township developments, eco-industrial parks, strategic partnerships and capitalise on value creation across its key growth corridors.
As of June 30, 2025, SP Setia has unbilled sales pipeline of RM3.9 billion, 42 ongoing projects with a remaining land bank of 2,100.72 hectares (5,191 acres), and remaining gross development value of RM90.18 billion.
— BERNAMA
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