KUALA LUMPUR: SP Setia Bhd's net profit surged 537.3 per cent to RM70.19 million in the third quarter (Q3) ended September 30, 2022, from RM11.01 million in the same period last year due to higher contributions from commercial developments in the southern region.

Another contributing factor was KL Eco City which had no more sales cancellations from its VIIA project in Q3 2022 compared to the same quarter in the preceding year, which was significantly higher.

Its revenue rose 44.8 per cent year-on-year (YoY) to RM860.94 million versus RM594.55 million a year ago.

For its nine-month period, the company recorded an increase of 35.22 per cent in its net profit to RM217.78 million from RM161.05 million in Q3 2021.

Revenue for the period grew to RM2.75 billion from RM2.73 billion last year.

The company said sales were mainly from local projects, which contributed RM2.34 billion or approximately 87 per cent, whilst the international projects contributed another RM359.0 million or about 13 per cent of the sales.

On the local front, the main contribution came from the central region with RM1.68 billion, aided by RM465.0 million from the southern region, while the northern region contributed RM201.0 million.

"Our concerted efforts in clearing completed inventories have paid off, whereby RM478.0 million were sold.

"Meanwhile, RM592.0 million of bookings were secured as of September 30 2022. We are optimistic that we will hit our sales target for this year," said president and chief executive officer Datuk Choong Kai Wai.

He added that the company's local projects progress is envisaged to improve by Q4 despite the recent acute labour shortages faced by the real estate industry.

"Our developments in Australia are progressing well, whereby Sapphire by the Gardens was delivered to homebuyers last month, whilst UNO Melbourne is slated for partial completion by this year-end.

"Hence, we expect revenue from Australia to contribute significantly to our final quarter of 2022," he said.

The company is currently anchored by 47 ongoing projects and an effective remaining land bank of 6,687 acres with a gross development value of RM119.47 billion as of September 30.