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Economy

S P Setia posts RM98m 2Q profit as revenue falls 13%

S P Setia Bhd reported a net profit attributable to shareholders of RM98.06 million for the second quarter ended June 30, 2026, broadly flat against RM99.80 million a year earlier despite a 13% drop in revenue.

Source: EdgeProp Malaysia · August 20, 2026 at 12:31 AM · AI-assisted report

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S P Setia posts RM98m 2Q profit as revenue falls 13%
Image: edgeprop.my

PENANG, 20 AUGUST 2026 —

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S P Setia Posts RM98m 2Q Profit as Sales Hit RM864m Amid Regional Expansion

Market Impact

PETALING JAYA (Aug 19): S P Setia Bhd reported a net profit attributable to shareholders of RM98.06 million for the second quarter ended June 30, 2026 (2QFY2026), marking a marginal decline from RM99.80 million in the same period last year despite a 13% drop in revenue.

In a Bursa Malaysia filing on Wednesday, the property developer said revenue fell to RM821.39 million from RM943.73 million, while profit before tax (PBT) eased 2.7% to RM190.40 million from RM195.67 million. Basic earnings per share stood at 1.95 sen, compared with 1.99 sen previously.

The group secured RM864 million in sales during the quarter, with domestic developments contributing RM784 million, or 91%. The Central and Southern regions accounted for about 99% of domestic sales, underscoring the group’s focus on Malaysia’s key economic hubs. First-half sales reached RM1.42 billion, with domestic developments contributing RM1.28 billion, or 90%, while international projects contributed RM140 million.

Domestic Projects Drive Stability as Land Sales Decline

Property development revenue fell 14% to RM772.38 million from RM892.76 million, primarily due to a RM115 million reduction in land-sale revenue. However, development revenue remained broadly stable, supported by progress across domestic projects. Property development PBT rose 3.7% to RM193.25 million from RM186.27 million, aided by a one-off reversal of foreseeable-loss provisions following the disposal of low-cost land.

For the six months ended June 30 (1HFY2026), net profit attributable to shareholders fell 22.6% to RM129.18 million from RM166.82 million, while revenue declined 3.9% to RM1.65 billion from RM1.71 billion. PBT decreased 11.6% to RM298.18 million from RM337.14 million.

The property development segment recorded first-half revenue of RM1.55 billion and PBT of RM299.42 million, compared with RM1.61 billion and RM319.60 million, respectively, a year earlier. The group attributed lower segment revenue to the completion of key Australian projects in prior years, while PBT was impacted by the absence of land-sale profit contributions, partly offset by one-off reversals of employee-benefit and foreseeable-loss provisions and improved performance from Battersea Power Station.

Debt Reduction and Regional Growth Initiatives

S P Setia reduced borrowings by RM209 million during the quarter, bringing net gearing to 0.31 times. The group also highlighted progress in its regional expansion, including the launch of the 509-acre Setia Fontaines Industrial Park in Bertam, Penang, in June. The industrial park, targeting advanced manufacturing, digital infrastructure, and high-technology industries, has secured a memorandum of collaboration with the Northern Corridor Implementation Authority to explore green electricity supply under the Corporate Renewable Energy Supply Scheme. A memorandum of agreement was signed with Lembaga Perumahan Negeri Pulau Pinang to develop 640 affordable homes.

Internationally, Setia Edenia at EcoXuan in Ho Chi Minh City, Vietnam, remains on track for completion in 2027.

No Dividend Declared as Group Maintains Cautious Approach

No dividend was declared for ordinary shares for the six-month financial period ended June 30, reflecting the group’s cautious capital management amid market uncertainties.

S P Setia president and CEO Datuk Zaini Yusoff said the results reflected steady sales performance, lower borrowings, and disciplined cost and cash-flow management. “The group continues to focus on executing its domestic and international strategies while maintaining financial prudence,” he said.

Malaysia’s Property Sector Faces Mixed Signals

The group’s performance comes amid a mixed outlook for Malaysia’s property sector, with demand in key regions remaining resilient but challenges persisting in high-end segments. Analysts note that while domestic sales remain, international projects face longer gestation periods and regulatory complexities.

Industry observers highlight that S P Setia’s emphasis on industrial parks and affordable housing aligns with Malaysia’s economic priorities, particularly in Penang, a key manufacturing and technology hub. The group’s collaboration with government agencies to explore green energy solutions also signals a strategic pivot toward sustainability, a growing priority in the sector.

Forward-Looking: Expansion and Efficiency Drive Growth

Looking ahead, S P Setia is expected to continue leveraging its domestic market strength while exploring opportunities in high-growth sectors such as advanced manufacturing and digital infrastructure. The group’s focus on reducing debt and improving operational efficiency may further enhance its resilience in a challenging economic environment.

With no dividend declared for the period, stakeholders will be watching closely for signs of recovery in profitability and potential capital returns in future quarters. The group’s regional projects, particularly in Vietnam, remain a key growth driver, though their long-term impact will depend on market conditions and execution.

For now, S P Setia’s results underscore a steady, if cautious, performance in a sector navigating shifting demand patterns and economic headwinds.

Related: Bursa Malaysia · CEO · Penang

Reporting based on EdgeProp Malaysia. Figures and claims are subject to revision as the story develops. DomainFork publishes editorial context, not investment advice — see our editorial standards.