PETALING JAYA: S P Setia Bhd’s net profit decreased 1.7% to RM98.06 million in Q2’26 ended June 30, 2026, from RM99.8 million a year earlier, as revenue fell 13% to RM821.39 million from RM943.73 million.
The property developer said the weaker quarterly revenue was mainly due to a RM115 million decline in land sale revenue, although development revenue remained broadly stable, supported by continued progress across its domestic projects.
Despite the lower revenue, the property development segment’s profit before tax rose 4% to RM193 million, supported by a one-off reversal of foreseeable loss provisions following the realisation of low-cost land disposals, according to its filing with Bursa Malaysia.
For H1’26, net profit declined 22.6% to RM129.18 million from RM166.82 million, while revenue eased 3.9% to RM1.65 billion from RM1.71 billion previously.
The weaker first-half performance was primarily due to the non-recurrence of revenue from Australian projects following the completion of key project handovers in prior years, as well as the absence of material land sale profit contribution. Domestic project contributions remained steady overall, with stronger performance from the Southern region partly offsetting a moderate contribution from the Central region.
Meanwhile, sales in Q2’26 stood at RM864 million, with domestic developments contributing RM784 million, or 91% of the total. For H1’26, the group secured RM1.42 billion in sales, of which RM1.28 billion, or 90%, came from domestic developments.
S P Setia said its borrowings were reduced by RM209 million, while net gearing remained stable at 0.31 times as it continued its deleveraging efforts.
Looking ahead, the group said it remained focused on disciplined execution and growth through its portfolio of townships, eco-industrial parks and international developments. It highlighted the 509-acre Setia Fontaines Industrial Park in Bertam, Penang, which broke ground in June, while Setia Edenia in Vietnam remains on track for completion in 2027.
