PETALING JAYA (March 2) — S P Setia Bhd has wrapped up its financial year ended Dec 31, 2025 (FY2025) on a solid note, exceeding its annual sales target and sharpening its strategic focus on industrial developments and financial consolidation.
The group achieved total sales of RM5.11 billion, outperforming its RM4.8 billion target. This milestone reflects steady domestic demand and a deliberate repositioning toward higher-margin segments, including eco-industrial parks — a move that aligns with growing investor interest in industrial land in Selangor and integrated industrial townships across the Klang Valley.
FY2025 Financial Performance Overview
Based on audited results filed with Bursa Malaysia:
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Revenue declined 20.3% year-on-year to RM4.22 billion, compared to RM5.29 billion previously, largely due to a high base effect from significant land disposals and overseas project completions in FY2024.
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Profit before tax (PBT) stood at RM969.1 million, down 13.6% from RM1.12 billion.
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Net profit attributable to shareholders eased 11.5% to RM509.9 million.
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Earnings per share (EPS) slipped to 8.56 sen from 10.16 sen.
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Dividend per share was declared at 2.55 sen, compared to 2.88 sen previously.
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Net asset value (NAV) per share improved slightly to RM2.70, up from RM2.66.
Despite the full-year moderation, fourth-quarter momentum was notably strong. PBT for 4QFY2025 surged 75% to RM471 million, driven by resilient domestic project performance and strategic land transactions.
Industrial Pivot Gains Traction
A key highlight of FY2025 was the group’s increasing exposure to the industrial segment. The Setia Alaman Industrial Park delivered a strong maiden contribution, accounting for 11% of total development revenue during the year.
This industrial pivot is particularly relevant in the context of expanding demand for industrial land in Selangor, where logistics, e-commerce, and advanced manufacturing sectors continue to grow. Established corridors such as the industrial property in Subang area and factory in Puchong remain attractive to occupiers seeking connectivity to ports, highways, and labour pools.
By targeting industrial and eco-industrial formats, S P Setia is positioning itself to capture faster turnaround cycles and potentially stronger margins compared to conventional residential developments.
Domestic Strength and International Contributions
Domestic projects accounted for RM3 billion, or 59%, of total sales, with the Central region — including Kuala Lumpur and Selangor — contributing RM2 billion. The Southern region delivered RM0.9 billion.
The group’s presence in core growth corridors supports ongoing demand for commercial property in KL, especially within integrated townships where retail, residential, and office components coexist. Demand for office space in Bukit Jalil and other decentralised business districts continues to be underpinned by infrastructure upgrades and lifestyle-driven planning concepts.
International projects contributed RM0.7 billion, or 14% of total sales, with developments such as Setia Edenia in Vietnam progressing toward completion in 2027.
Strengthened Balance Sheet and De-Gearing
S P Setia’s disciplined approach to land monetisation and cost optimisation has significantly improved its financial position. Net gearing declined to 0.33 times, marking a meaningful reduction compared to prior years.
Research houses have broadly characterised the stock as a “value and recovery” opportunity, citing its deep discount to net tangible assets and potential upside catalysts, including a possible Setia REIT listing in 2026.
Analysts from MIDF Research, Maybank Investment Bank, HLIB Research and Kenanga Research have maintained positive calls, highlighting improved cash flow, strategic diversification into industrial assets, and supportive policy measures under Budget 2026.
Leadership Reset and 2026 Outlook
President and CEO Datuk Zaini Yusoff described the latest results as evidence of disciplined execution and a resilient operating model, despite ongoing market headwinds.
Looking ahead, the group has set a 2026 sales target of RM4.6 billion. Strategic priorities include accelerating catalytic township developments, expanding eco-industrial parks, and leveraging policy incentives such as stamp duty exemptions.
The refreshed leadership team — including deputy CEO Tan Hwa Min and chief operations officer Datuk Yuslina Mohd Yunus — is tasked with steering the company toward leaner operations and greater technological adoption. The integration of PropTech solutions, including Building Information Modelling (BIM) and Industrialised Building Systems (IBS), is expected to improve construction precision, reduce rework, and safeguard margins amid inflationary pressures.
Strategic Positioning in KL and Selangor
For investors focused on Kuala Lumpur and Selangor, S P Setia’s evolving portfolio underscores a broader market transition. Integrated townships that blend residential, commercial property in KL, and light industrial components are increasingly viewed as sustainable, long-term value propositions.
As demand for industrial land in Selangor remains firm — particularly in high-accessibility nodes such as Subang and Puchong — developers with diversified exposure across residential, office, and industrial segments are better positioned to navigate cyclical shifts while capturing structural growth.
With a stronger balance sheet, improving quarterly momentum, and a clearer industrial expansion strategy, S P Setia enters 2026 aiming to convert operational discipline into sustainable value creation across Malaysia’s most dynamic property corridors.
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