Sp

PETALING JAYA: SP Setia Bhd’s net profit for the first quarter ended March 31 fell 45% to RM61.49 million from RM112.12 million a year ago mainly due to the property development segment where its Australian project received marginal recognition. Its revenue dropped 36% to RM665.50 million from RM1.03 billion mainly on marginal recognition from the Parque Melbourne project for the current quarter compared to the previous corresponding quarter, where revenue was substantially recognised upon settlement based on the completion method previously. “As majority of the units in Parque Melbourne has been settled in previous quarters, revenue contribution for the current quarter has hence dropped,” it said. Over the same period, the group secured sales of RM1.11 billion. Local projects contributed RM635.6 million, which represented 58% of the total sales while international projects contributed RM469.1 million, which represented the remaining 42% of the total sales. … [Read more...] about SP Setia earnings down 45% in first quarter

PETALING JAYA: Analysts are neutral on SP Setia Bhd’s privatisation agreement with Kuala Lumpur City Hall (DBKL) for land in Cheras in return for the development of the Quality Sustainable People Housing (QSPH) project there, maintaining their ‘buy’ calls on the stock. MaybankIB Research said it is neutral on SP Setia’s latest land deal in Cheras, and maintained its earnings forecasts and RM3.79 target price on SP Setia with a ‘buy’ call. “While it is strategically located in the fringe of city centre, we are concerned on its planned development amid an overcrowded high-rise property segment. Also, SP Setia can only start launching post the completion of QSPH phase 1 (within 48 months), putting on financial stress on its cash flow in the near term.” RHB Research Institute maintained its ‘buy’ rating on SP Setia’s recent share price weakness, but trimmed its target price to RM3.34 from RM3.88, offering an 11% upside … [Read more...] about Analysts maintain ‘buy’ call on SP Setia

PETALING JAYA: Retro Highland Sdn Bhd, in which SP Setia Bhd and Tradewinds Corp Bhd own a 50% stake each, has entered into a privatisation agreement with Kuala Lumpur City Hall (DBKL) for the construction of the Quality Sustainable People Housing (QSPH) project in Cheras. In return, Retro Highland will be awarded 52.25 acres of leasehold land in Cheras valued at RM1.19 billion, to be used for a mixed project with an estimated gross development value (GDV) of RM11.03 billion and a development period of 11 years. The agreed value of the exchange land of RM1.19 billion comprises the construction cost for Phase 1 and Phase 2 of up to RM344.79 million and RM835.12 million, respectively and cash consideration of RM14.99 million. If the construction cost of the QSPH development is lower than the estimated cost, a cash consideration for the difference will be paid to DBKL accordingly. Retro Highland is a special purpose vehicle of SP Setia and Tradewinds Corp Bhd to undertake the … [Read more...] about SP Setia, Tradwinds to develop housing project for KL City Hall in return for RM1.19b land

PETALING JAYA: S P Setia Bhd's 50% jointly controlled entity Retro Highland has entered into a privatisation agreement with the Kuala Lumpur City Hall (DBKL) for the construction of the Quality Sustainable People Housing (QSPH) project in Cheras. In return, Retro Highland will be awarded with 52.25 acres of leasehold land in Cheras valued at RM1.19 billion, to be used for mixed development with an estimated gross development value (GDV) of RM11.03 billion and a development period of 11 years. The agreed value of the exchange land of RM1.19 billion comprises the construction cost for Phase 1 and Phase 2 of up to RM344.79 million and RM835.12 million, respectively; cash consideration of RM14.99 million; and if the construction cost of the QSPH development is lower than the estimated cost, an additional cash consideration for the difference will be paid to DBKL accordingly. Retro Highland is a special purpose vehicle for S P Setia and Tradewinds Corp Bhd to undertake the privatisation … [Read more...] about SP Setia unit develops housing project for DBKL, gets RM1.19b Cheras land in return

PETALING JAYA: The Inland Revenue Board (IRB) has slapped SP Setia Bhd with an additional income tax and penalty for a second time, this time totalling RM32.54 million. In a filing with Bursa Malaysia today, the group said it was served with notices of additional assessment for the years of assessment 2009 to 2015 for an additional income tax of RM22.44 million and a penalty of RM10.1 million. The notices were served as the IRB disallowed the interest expenses deducted by SP Setia over the years of assessment 2011 to 2015. IRB also disallowed the common expenses deducted by SP Setia in the years of assessment 2009 to 2015. Upon consulting its tax solicitors, SP Setia said there were reasonable grounds to challenge the basis and validity of the disputed notices of additional assessment raised by the IRB and the penalty imposed. In November last year, SP Setia’s wholly owned subsidiary Bandar Setia Alam Sdn Bhd (BSASB) was slapped with an additional income tax and penalty … [Read more...] about SP Setia slapped with second round of tax and penalties