S P Setia 3Q26 Profit Slides to RM32.61mil, Gearing 0.30x

Quick Answer: S P Setia reported net profit of RM32.61mil for the third quarter ended Sept 30, 2026 (3Q26), down from RM68.03mil a year earlier, as revenue fell to RM672.55mil. Net gearing improved to 0.30 times from 0.35 times in 3Q25, which matters for shareholders because lower debt reduces the group’s reliance on borrowings.

S P Setia posted a sharp fall in quarterly earnings, with net profit more than halved from a year earlier. The property developer said it will keep focusing on disciplined execution, prudent capital management and earnings resilience.

Revenue dropped to RM672.55mil from RM872.26mil in the same period last year. Management says the group is evolving into a more balanced and integrated real estate platform.

Why Did S P Setia’s 3Q26 Profit Fall More Than Half?

S P Setia 3Q26 results and property development projects — Construction activity at a Malaysian development site. Source: Pexels.

The property development segment drove the drop. Its revenue came to RM612mil, 25% lower than RM811mil in 3Q25.

S P Setia blamed slower sales conversion in domestic development projects. It also cited the absence of a land sale transaction in the quarter.

The group said a higher revenue base from more project completions, compared with the same quarter a year earlier, also weighed on the segment.

How Did Profit Before Tax Move?

Profit before tax moderated by 21% from 3Q25. The company attributed this mainly to a lower expected contribution from land sales.

How Strong Were S P Setia’s Sales in 3Q26?

Sales for 3Q26 reached RM918mil. The Central and Southern regions led, contributing 56% of total sales.

International development projects accounted for 32% of 3Q26 sales, largely supported by Vietnam.

For the nine months, sales reached RM2.34bil. Domestic developments contributed RM1.79bil (77%) and international developments RM431mil (18%).

Is S P Setia’s Balance Sheet Getting Stronger?

Year-to-date borrowings fell by RM402mil. Net gearing improved to 0.30 times from 0.35 times in 3Q25, in line with the group’s ongoing deleveraging strategy.

Net gearing: 0.30 times (3Q25: 0.35 times)
Borrowings reduction: RM402mil year-to-date
Nine-month revenue: RM2.32bil
Nine-month profit before tax: RM391mil
Development share of revenue: 83%

What Are S P Setia’s Melbourne and Vietnam Projects Delivering?

The group broke ground on Atlas Melbourne on Sept 17, 2026. Sales have exceeded 60% of the total units.

S P Setia is targeting the launch of Sapphire Tower 2’s residential units in December 2026. Its Melbourne pipeline also includes UNO Melbourne, Fulton Lane and Parque Melbourne.

In Vietnam, Setia Edenia in the EcoXuan township of Ho Chi Minh City remains on track for completion in 2027.

Datuk Zaini Yusoff, S P Setia president and chief executive officer, said: “Improved sales momentum, coupled with a further reduction in borrowings, reflects our disciplined approach to growth.”

Key Takeaways for S P Setia Shareholders

3Q26 net profit was RM32.61mil, against RM68.03mil in 3Q25.
Property development revenue fell 25% to RM612mil, mainly on slower domestic sales conversion and no land sale this quarter.
Nine-month sales of RM2.34bil were supported by RM431mil from international developments.
Net gearing eased to 0.30 times, with RM402mil in borrowings repaid year-to-date.
Investors may want to watch the Sapphire Tower 2 launch targeted for December 2026 and the Setia Edenia completion in 2027.

Investors may want to compare these figures with their own tracking tools, such as AI Stock Analysis for Malaysians. This article is for information only and is not investment advice. Always do your own research before making any decision.

Frequently Asked Questions

What was S P Setia’s net profit in 3Q26?

S P Setia reported a net profit of RM32.61mil for the quarter ended Sept 30, 2026. That compares with RM68.03mil in the previous corresponding period.

What is S P Setia’s net gearing?

Net gearing improved to 0.30 times in 3Q26, down from 0.35 times in 3Q25. Year-to-date borrowings fell by RM402mil.

Where is S P Setia’s Atlas Melbourne project?

Atlas Melbourne is in Melbourne, Australia, where S P Setia broke ground on Sept 17, 2026. Sales have exceeded 60% of the total units.

When will Setia Edenia in EcoXuan be completed?

Setia Edenia in the EcoXuan township of Ho Chi Minh City, Vietnam, remains on track for completion in 2027.

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