S P Setia’s 9MFY25 Earnings Stay on Track Despite High Base Effect

S P Setia Berhad reported 9MFY25 core net income of RM277.7 million, in line with both internal and consensus expectations at 71% and 73% of full-year forecasts. The group’s 3QFY25 core profit eased to RM100.9 million, reflecting an 8.7% quarter-on-quarter decline following a strong second quarter lifted by land sale recognition from Taman Pelangi. Lower administrative costs and reduced joint-venture losses helped soften the impact.

Year-on-year, S P Setia delivered stronger quarterly earnings, supported by a 20.5% reduction in financing costs, though revenue fell 30.7%. On a cumulative basis, 9MFY25 earnings were weighed down by last year’s unusually high base, which benefited from land sale gains and robust contributions from Australia and Vietnam.

Earnings Stay on Track

New property sales reached RM1.59 billion in 3QFY25, bringing total sales to RM3.49 billion, or 73% of the FY25 target. Domestic projects accounted for most sales, while overseas projects contributed 17%. Management remains confident of meeting the RM4.8 billion target.

Analysts maintained a BUY call with an unchanged target price of RM1.26, noting S P Setia’s attractive valuation at a steep discount to its net tangible assets and additional upside from a planned REIT listing by 2026.

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