Page 14 - S P Setia Annual Report 2016

 

 

 

 

 

Page 14 - S P Setia Annual Report 2016
P. 14

12    S P Setia Berhad Group                                 Our Business | Our Performance Review | Our Leadership and People
                Annual Report 2016                                        | Our Achievements and Accolades | Our Sustainability Statement
                                                                         | Our Governance | Our Financial Statements | Other Information



          Management Discussion and Analysis















          Our Group is well-established in


          the three key economic centres of


          Malaysia, namely the Klang Valley,                                                                                   7


          Johor Bahru and Penang, and also


          in Sabah. Its international reach


          now extends to five countries which


          are the United Kingdom, Australia,


          Singapore, Vietnam and China.






          Overview of the Group’s Business    Our Group recorded its strongest sales   every product in our developments offers.
                                              performance in the fourth quarter of   We  also want  to ensure that  a good  mix
          Our Group is well-established in the three   FY2016 with RM1.78 billion in sales. This   of products is offered to the public, with
          key economic centres of Malaysia, namely   is a commendable result as it not only   more launches of affordable and mid-range
          the Klang Valley, Johor Bahru and Penang,   demonstrates our versatility but is also a   housing units.
          and also in Sabah. Its international reach   laudable feat in such challenging times of a
          now extends to five countries which are   soft property market.          Financial Performance
          the United Kingdom, Australia, Singapore,
          Vietnam and China.                  We have total unbilled sales of RM8.25   During the year under review, our Group
                                              billion and 30 ongoing projects at the start   achieved a profit before taxation (“PBT”)
          We achieved total sales of RM3.82 billion for   of 2017. In addition, we have an effective   of RM1.18 billion on the back of revenue
          the financial year (“FY”) ended 2016, which   remaining land bank of 5,218 acres with   amounting to RM4.96 billion. Property
          exceeded our revised sales target of RM3.5   a Gross Development Value (“GDV”) of   development remained the key driver of
          billion. Local projects contributed RM3.5   RM76.48 billion moving forward into 2017.   our operations and accounted for 90.5% of
          billion, representing approximately 92% of                               our Group’s total revenue. Revenue derived
          the total sales. Domestic sales were largely   For the continuous support from our key   from construction and other operating
          from the Klang Valley with RM2.64 billion,   stakeholders and in this instance, our   activities accounted for 6.2% and 3.3%
          consisting of sales mainly from Setia Alam,   purchasers, we want to ensure that all our   respectively. Our FY2015 covered a period
          Setia EcoHill & Setia EcoHill 2, Setia Eco   properties are priced competitively to the   of 14 months as a result of the change of
          Templer and KL Eco City. The Southern,   market so that affordability is commensurate   financial  year-end  from  31  October  2015
          Northern and Eastern regions contributed   with the quality and features that each and   to 31 December 2015. Hence, for a better
          RM860 million in sales.
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