S P Setia records RM2.34b sales in nine months, cuts borrowings by RM402m

S P Setia Bhd posted RM2.34 billion in sales for the first nine months of 2026 and reduced borrowings by RM402 million. Net profit for the third quarter fell 52.1% to RM32.61 million, while revenue declined 22.9% to RM672.55 million. The group attributed weaker results to slower domestic sales conve

PETALING JAYA (Nov 11) — S P Setia Bhd recorded RM2.34 billion in sales in the first nine months of 2026 and reduced borrowings by RM402 million over the period, as the developer maintained its focus on debt reduction and prudent launches. The group said in a statement on Wednesday (Nov 11) that its net gearing stood at 0.30 times at Sept 30, compared with 0.35 times a year earlier.

However, net profit for the third quarter ended Sept 30, 2026 (3QFY2026) fell 52.1% to RM32.61 million from RM68.03 million a year earlier. Revenue declined 22.9% to RM672.55 million from RM872.26 million. In a Bursa Malaysia filing on Nov 11, S P Setia attributed lower property development revenue to slower sales conversion in domestic projects, the absence of a land sale transaction during the quarter and a higher comparative base arising from more project completions a year earlier.

Third-quarter sales totalled RM918 million. The central and southern regions collectively contributed 56% of total sales, while international developments accounted for 32%, largely supported by Vietnam, it said in the statement. President and chief executive officer Datuk Zaini Yusoff said improved sales momentum and the further reduction in borrowings reflected the group’s disciplined approach to growth.

“As we close the financial year, we remain focused on prudent launches, cost discipline and cash flow to deliver sustainable long-term value to our shareholders,” he said. Quarterly earnings per share eased to 0.65 sen from 1.36 sen. No dividend was declared for ordinary shareholders for the financial period ended Sept 30.

Property development revenue fell 24.6% to RM611.55 million from RM810.84 million, while the segment’s pre-tax profit decreased to RM68.35 million from RM147.94 million. Meanwhile, pre-tax profit from investment holding and other operations rose to RM24.79 million from RM13.05 million, supported mainly by better contributions from joint ventures and the non-recurrence of an unrealised foreign exchange loss recorded a year earlier.

For the nine months ended Sept 30, net profit declined 31.1% to RM161.80 million from RM234.86 million, while revenue fell 10.3% to RM2.32 billion from RM2.59 billion. Nine-month pre-tax profit decreased 21.4% to RM391.32 million from RM498.13 million. The group attributed the decline mainly to lower contributions from land sale transactions.

Compared with the preceding quarter, pre-tax profit fell to RM93.14 million from about RM190 million. The second quarter had benefited from a one-off reversal of foreseeable loss provisions that did not recur in the third quarter. In Australia, S P Setia said it is targeting the launch of Sapphire Tower 2’s residential units in December 2026, advancing the next phase of its Sapphire by the Gardens precinct in Melbourne. The group also held the groundbreaking for Atlas Melbourne on Sept 17. It said sales at the development had exceeded 60% of total units. In Vietnam, it said Setia Edenia, within the EcoXuan township in Ho Chi Minh City, remains on track for completion in 2027.