SP Setia revises upward sales target

04 March 2010 , By The Star

Property developer SP Setia Bhd has increased its sales target for the financial year ending Oct 31, 2010 (FY10) to RM2bil from RM1.65bil announced earlier, backed by a jump in sales of RM608mil recorded for the first quarter.

The group achieved its highest ever sales of RM1.65bil in FY09 despite challenging market conditions last year.

President and chief executive officer Tan Sri Liew Kee Sin said he was upbeat about the sales target after the group recorded a six-fold increase in sales for the first quarter compared with RM101mil achieved in the same quarter of FY09.

“The group’s sales have continued to hold up higher than pre-crisis levels due to strong branding and adoption of innovative marketing strategies,” he said after SP Setia’s AGM yesterday.

He added that the sustained sales performance, despite a price increase of at least 10% for the group’s entire product range, would underpin its targeted return to growth this year.

“Of the RM2bil sales target, almost all will come from the local market and 10% from our project in Vietnam.

“The market in Vietnam is not so stable at the moment and we are taking it slow and steady there,” he said.

Liew said the group’s main focus would be its projects in the Klang Valley, Penang and Johor Baru.

“We have about 10 ongoing projects in Malaysia with a total gross development value of RM26bil that would last for 10 to 12 years on our 3,900 acres of land,” he said.