Kuala lumpur: SP Setia Bhd's second quarter (2Q) net profit for the fiscal year ending June 30, 2025 (FY2025) has significantly decreased to RM99.8 million from RM295.03 million in the same quarter of the previous year. The company made this announcement in a filing with Bursa Malaysia today, indicating that its revenue also declined to RM943.73 million from RM1.49 billion in 2Q FY2024, largely due to local development contributions.
According to BERNAMA News Agency, there was a positive note in the sales figures, which rose to RM1.186 billion compared to RM883 million in the corresponding quarter of FY2024, mainly driven by the group's domestic projects. However, for the six-month period ending June 30, 2025 (2H FY2025), the net profit experienced a drop to RM166.82 million, down from RM372.36 million during the same period last year. Similarly, revenue decreased to RM1.71 billion from the previous RM2.97 billion.
Sales for the six-month period were predominantly from domestic projects, amounting to RM1.42 billion, accounting for 75 percent of total sales. The group's international projects contributed RM480 million, representing the remaining 25 percent of total sales. The group has been focused on reducing its borrowings, achieving a current net-gearing ratio of 0.34 times, in line with its debt reduction strategies.
Following the recent cut in the Overnight Policy Rate (OPR) by Bank Negara Malaysia (BNM) on July 9, 2025, by 25 basis points to 2.75 percent, SP Setia anticipates growth in the property development industry, especially in the residential sector. This rate cut, the first in five years, is expected to enhance buyer affordability, reduce developers' financing costs, and potentially boost market sentiment amid ongoing global uncertainties and rising construction costs.
Datuk Choong Kai Wai, SP Setia's president and chief executive officer, expressed a cautiously optimistic outlook amid current market challenges. The company is seeking opportunities to expand its presence in targeted high-growth segments. Looking ahead, SP Setia plans to accelerate its developments in catalytic townships, eco-industrial parks, and strategic partnerships, while capitalizing on value creation across its key growth corridors.
As of June 30, 2025, SP Setia reported an unbilled sales pipeline of RM3.9 billion, alongside 42 ongoing projects with a remaining land bank of 2,100.72 hectares (5,191 acres), and a remaining gross development value of RM90.18 billion.