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SP Setias Profile

SP Setia started out in 1974 as a construction company and was eventually listed on Bursa
Malaysia in 1993. In 1996, it refocused its core business to property development with
supporting wood based manufacturing. Today, SP Setia is a fully-integrated property player
and well-established in the three key economic centres in Malaysia, namely Klang Valley,
Johor Bahru and Penang.
In the Klang Valley, the Group enjoys a strong presence through its township
developments of Setia Alam and Setia Eco Park in Shah Alam. It is also known for its three
luxury projects in Kuala Lumpur which are Duta Nusantara and Duta Tropika in Sri Hartamas
and Setiahills in Ampang.
It entered the high-end condominium market in 2009 with the launch of Setia Sky
Residences in Kuala Lumpur City Centre. Leveraging on the strong demand for commercial
and investment grade properties, S P Setia has also expanded into the integrated commercial
and retail sector with projects such as SetiaWalk, Setia Avenue, KL Eco City and Setia City
Mall.In Johor Bahru, it made its mark through signature township developments like Bukit
Indah and Setia Eco Gardens in the Nusajaya Corridor, Setia Indah and Setia Eco Cascadia in
Tebrau and Setia Tropika in Kempas. Other projects down south include Setia Business Park
which o ers ecologically-friendly industrial, oce and warehousing facilities and Setia Sky
88, a luxury condominium project in the heart of Johor Bahru city centre. Up north in Penang,
there is Setia Pearl Island in Bayan Lepas, Setia Vista in Relau, Setia Greens in Changkat
Sungai Ara, Brook Residences on Jesselton Road and Setia V Residences along the famed
waterfront promenade of Gurney Drive.
In East Malaysia, Setia made its presence felt in Kota Kinabalu, having entered into a
development agreement with the State Government to build a state-of-the-art transportation
and integrated commercial hub there called Aeropod @ Tanjung Aru.
Overseas, the Group has a growing presence in Vietnam since 2007 with its rst jointventure development of EcoLakes at My Phuoc. This groundbreaking eco sanctuary located
40km outside Ho Chi Minh City (HCMC) was named First Runner-up in the FIABCI Prix
dExcellence Award for Best Development Master Plan in 2010. Following this, the Group
launched a mixed development project called Eco Xuan at Lai Thieu in Tuan Anh District,
Binh Duong Province.

S P Setia entered the Australian real estate market in 2011 with the launch of Fulton
Lane in Melbournes central business district and has another upcoming project called Parque
Melbourne in the suburb of St Kilda. It has also embarked on two condominium projects in
Singapore the rst is called 18 Woodsville in Potong Pasir and the second is Eco Sanctuary,
located next to the Bukit Timah Nature Reserve.In 2012, S P Setia spread its wings to two
other countries. The rst was China where the developer was invited by the Malaysian
Government to lead the Malaysian consortium formed to jointly develop the China-Malaysia
Qinzhou Industrial Park. In September 2012, S P Setia successfully completed its acquisition
of Battersea Power Station in the United Kingdom through a joint-venture with Sime Darby
Berhad and the Employees Provident Fund Board. The redevelopment of this iconic central
London landmark is slated for launch in early 2013.

Introduction
Property developer, general building construction and suppliers of wood product is basically
what summarizes SP Setia as a company. First started from a humble beginning in the year
1974 has now grown into a multimillion company with multiple offices and developments in
Malaysia, Singapore, Australia, Vietnam, China and the United Kingdoms
As property developers they have came up with multiple townships namely Setia Ecohill,
Setia Indah, Setia Tropika and Setia Alam. With their strong background they now delve into
the high rise luxury development around the country and the world
As general building constructors, they are major infrastructure builders with their expertise
and knowledge in the construction field. Moreover , they also bring along their expertise in
industrialize building system in which prefabricated building components are made and used
to build building in a faster, efficient, higher quality, time saving and in the long run cost
efficient. To supplement their building construction industry, they have also came up with
their wood manufacturing industry to complement and to supply wood products for
construction uses.
SP Setia is a company well aware of their responsibility to the community and the
environment. They are builders of township such at the Setia Eco Gardens in which nature is
incorporated into their building construction. As their strive to promote a better environment
they also have a partnership with University Tunku Abdul Rahman in enstablishing an
academic Chair of Environmental Engineering and Green Technology aimed in developing,
research ,training and education in the studies field of envirmental engineering and green
technology.
This report is to discuss and analyze SP Setias 5 year summary and to compare their
performance in the year 2007,2008, 2009, 2010, 2011. This report will highlight the reason of
what, why and how SP Setia came into being a strong company.

Revenue
2500000
2000000
1500000
RM

Column2

1000000
500000
0
2007

2008

2009

2010

2011

Year

Graph 1 show the revenue of SP Setia in different years.


In year 2007, SP Setia Bhd started developing townships and niche projects in the Klang
Valley, Penang and Johor to aim for a broader revenue contribution in the future. SP Setia Bhd
aimed a larger contribution from integrated commercial property projects within matured
townships, high-end condominiums and overseas property projects in five years and 80% of
revenue in the last financial year was contributed by this segment. Besides that, they started to
launch more Eco series residential properties, high-end condominiums as well as
intergrated commercial properties. Furthermore, SP Setia Bhd entered the regional property
development scene on year 2007 and signed a joint-venture agreement with Becamex IDC
Corp of Vietnam to launch its 558-acre, US$880mil (RM2.7bil) GDV township project and
Ecolakes at My Phuoc, in Binh Doung Province. This enabled them to have a greater market
and global reputation besides in Malaysia and it has successfully increased the revenue of the
Group in the year 2007. Moreover, government has announced about the citizen can withdraw
the money from Employees Provident Fund (EPF) to buy their house and this gave a
tremendous boost to the property market. Besides that, Malaysia My Second Home
Program(MM2H) program re-launched by the government during 2006 also boost up the
property market in Malaysia. This program has encouraged more foreigners to buy or invest
properties in Malaysia.
In year 2008, the revenue of the SP Setia Bhd started to drop due to the global
financial crisis. Besides that, construction costs also rose due to the inflation of the building
material such as sand, cement, concrete and roofing material. Therefore, the building prices

also increase between 25%-30 % therefore slower down the projects and caused the total
revenue of SP Setia Bhd decreased.
In year 2009 SP Setia sales hit RM1.65 billion in the year under review. Malaysian
projects accounted for RM1.58 billion whilst EcoLakes, the Groups maiden project in
Vietnam, achieved a commendable RM71 million from the launch of its first two phases
beginning February 2009. These projects have increased their total revenue. Besides that, SP
Setias Eco Gardens Project in Johor and the Pavilion Kuala Lumpur (KL) has emerged the
winner of international property award, this made them becoming a more solid brand in
Malaysia. Another reason causes the total revenue increase from year 2008 to year 2009 is SP
Setia Bhd has launched 5/95 Home Loan Package, this allowed buyers to make a down
payment of five per cent while the balance is payable upon completion of the property.
Besides that, other benefits in this package include free legal fees and no stamp duty on the
sale and purchase agreement, loan agreement and the memorandum of transfer as all these
costs were beared by the developer.This program received an overwhelming and the sales
increased rapidly.
In year 2010, the total revenue of the SP Setia increases compared to year 2009. SP Setia
was expand their business to Europe country and start to previewed their first project in
Melbourne, a high-rise condominium development called Fulton Lane. The Autralian project's
launched in November 2011 spurred SP Setia to look at more opportunities in Melbourne and
it then acquired another piece of land, this time at the upmarket St Kilda Road for its second
high-rise project Parque Melbourne. These will help them to build up the reputation in Europe
and therefore they can have more construction project in the future. Moreover, the
government established a fund amount to RM1.5 billion to promote green technology,
provided soft loans to companies that utilise and supply green technology. Suppliers will be
able to obtain loans of up to RM50 million and consumer companies, RM10 million, and 2%
of the total interest rate will be borne by the government. Besides that, the government also
give income tax exemption to those building owners who obtain GBI certificates from year
2009 to year 2014 and stamp duty exemptions will be given to those buyers purchase
buildings with GBI certificates from developers. This encouraged a lot of people to buy the
green building and also directly boost up the sales of green building that built by SP Setia
Bhd. Besides that, the project that contributed to the companys revenue in year 2010 included
Setia Sky Residences at Jalan Tun Razak; SetiaWalk at Pusat Bandar Puchong; Setia Alam
and Setia Eco-Park at Shah Alam.

In year 2011, this is the fourth consecutive year of increase in the SP Setia new sales
record and represents the second consecutive year that total Group sales have exceeded the
RM2 billion. In this year, the revenue of the SP Setia Bhd was increases 28% compared to last
year which is the highest ever profit achieved by S P Setia. Revenue were derived from the
property development activities in the Klang Valley, Johor Bahru and Penang. The Groups
construction and wood-based manufacturing activities also contributed to the earnings
achieved. S P Setias achievements can be attributed to our strong branding and ability to offer
an extensive range of products that cater to diverse market needs. Besides that, SP Setia Bhd
has overcome the challenges because they has a strong team within the company and
launched the innovative products to the market. Furthermore, they also they know what the
customer needs and fulfilled all the requirement and therefore they can sell with a higher price
to increase their revenue. Moreover, the quality improvement of the construction project is the
factor that affect the total revenue of the organization. The prices of the building will be
increases as the higher the quality of the building and therefore total revenue will be increase.

Profit Before Tax


500,000
400,000
300,000
200,000
100,000
0
2007

2008

2009

2010

2011

Profit Before Tax (RM'000)

There are few factors that can significantly affect corporate profits and the four major
factors are product price, the products variable cost per unit, product sales and fixed costs of
the product.
The graph shows the profit before tax of SP Setia Bhd Group between the years 2007
and 2011.The profit before tax of the company grew rapidly after it bottomed out at almost
RM200million. SP Setia`s business has been doing well and grow rapidly since last decade
because the demand for new buildings and refurbishment if existing ones. It was led by
changing demographics, such as an annual population growth of about 2 percent, migration
(under the Malaysia My Second Home Program) and socioeconomic growth.
Their business started to drop from 2007 until 2009 as the volatile global economy
between 2008 and 2009 constituted an overall decline in revenue stream in Malaysia's
building construction market. Following the economy crisis, the cost of building materials
was also rose highly.
In 2007, SP Setia achieved an all-time high profit after tax of RM260 million on the
back of revenues totalling RM1.1 billion. The outstanding result was boosted by favourable
consumer sentiments and spillover benefits from the liberalisation of the property market, the
Group sold 3,303 units of properties in 2007 with a total sales value of RM 1.2 billion. The
active market in 2007 enabled them to obtain a high profit before tax.
In the following year under review has been a challenging one, The Groups projects
were also affected due to extreme cost pressures. It resulted in a slowdown and disruption in
work progress. The country went through a period of political upheaval coupled with rising

inflation. It became even worse by the spike in fuel prices, many industries along with the
construction sector suffered.
However, instead of taking a wait and see attitude, the Group took a proactive stance
instead of a reactive one. SP Setia incorporated cost escalation clauses into fixed price
contracts for a few key construction materials to avoid over-pricing of overall contract costs
during that period of uncertainty to expedite work progress. They also offered to purchase
materials for our subcontractors so that work could continue. Besides that, global financial
meltdown made people became more cautious when they were purchasing thus slower down
the property sales.
The inflation of construction materials and global economy crisis which reduced the
consumption capacity of the consumers had a high impact toward the operation of the
company. High construction cost and low sales were the major factors that caused the profit of
the company decreased.
Prices of steel and oil have retraced substantially (by about 43% and 20%,
respectively) from their peak levels in 2008. This made their profit became higher as in 2008
where the cost of raw materials was increased and lowered their profit. Despite the ongoing
turmoil in global financial markets, the Group made the decision to forge ahead with new
launches on its existing projects and also proceed with its plans to become a fully integrated
property developer with regional reach.
SP Setia completed a series of capital raising exercise to bring down its borrowing
costs, restructure its debt maturity profile and fund future working capital needs. This exercise
will allow the Group to embark on the various new projects planned to further boost our
strong and steady earnings base.continued to develop their projects in their homeland and also
made the first venture overseas into Vietnam, through a joint-venture with the states top
conglomerate Becamex IDC. The Group further expand their overseas plans in Hangzhou,
China. Besides that, the Group opened a Marketing Office in one of Singapores premier
business addresses at Harbourfront Place to serve Singaporeans or foreign investors.
Following their expansion in business and the properties in those few countries have
received massive responding, their profit increased following the revenue.

Those decisions which were taken by the Group in 2009 had shown significant result
as 2010 was a record-breaking year with a 40% increase in new sales and a 47% leap in net
profit from the preceding year.
The active market provided a solid and resilient earnings base for the Group, enabling us to
explore new key growth drivers like luxury high-rise, commercial developments and
international expansion.
Sales in 2011 were even continuing to break the sales record of the Group and the
balance sheet has never been stronger. 2011 was the second year running that the Group has
exceeded the RM2 billion mark, ringing in a new record of RM3.29 billion in sales for the
current year. Strong branding, breadth and depth of product range as well as geographical
reach in all the key economic regions were the major reasons that enabled the Group to
achieve the successful result thus increased the profit.

profit attributable to shareholders


350000
300000
250000
200000
150000
100000
50000
0
2007

profit attributable to
shareholders

2008

2009

2010

2011

During the world financial crisis in 2008, SP Setia facing low profit earns. Fall from
year 2007 with the amount of RM260, 070, to year 2008 RM213, 456, and the bottom point of
RM171, 233 in year 2009. The graph shows it fall in a smooth way and meet with the turning
point in year 2009. SP Setias profit attributable to shareholders climb upwards in year 2010
and year 2011 and result that the profit states higher than year 2007.
The fall in between 2007 to 2009 slant moderately. 2008 world financial crisis is the
most reason in affecting SP Setia profit slant down. World financial crisis starts with an
America bank fall for the reason of negative capital and affecting huge range of businesses.
This financial crisis affect globally not excluding Malaysia. In year end of 2008 and 2009,
surveys of Malaysia business flow have done by government found out that world financial
crisis not seriously affecting Malaysias business growth. SP Setia did not drop badly and was
able to survive and escalate with one of the reason is Malaysian investor did not act worried
and scared in investing, units buying and building construct, even in a bad financial situation.
The second reason for SP Setia maintain in steady decline is company had set a better
goal as their year target. With this factor, company were able to attract large amount of
customers in buying their building units or shares with no worries. With the help in tendered
government project, SP Setia was able to save their profit from fall into valley. Local
government having several policies to prevent Malaysia business ruined with the effect of
world financial crisis, such as open tender construction work to public. The fourth reason for
stabling the profit in such bad years probably is the reason of environment. Project built in a
high demanded area means that a guarantee sale will be achieve, allow company to avoid
deficit and even earn in a certain level.

Bounce back of year 2009 to 2010. After the world financial crisis, SP Setia comes out
with several ideas to restructure the company profit. SP Setia has overseas project in Vietnam
and China. These moves attracting large number of customers to buy the building unit
whether is for further investing or living. The environment of Vietnam and China is badly
demanding housing as their nations large population. This can help SP Setia recourse their
profit as what they were before world financial crisis. SP Setia take action in society helping
by companys staff and this helps company to build up goodwill in community with good
company image, and company will gain more customers invisibly. SP Setia never step back
after they take off their profit escaped from dropping down, they plan and establish more
project in the future such as environmental friendly Eco City, and more home to be built for
Shah Alam citizen, Project Setia Alam.
Rocket style rises in year 2010 and year 2011. The announce of future project in year
2009 assist SP Setia having a good starting point in year 2010. With the headlines of Eco City,
SP Setia introducing GREEN to social by building designs, activities, even greenengineering
course. This present that SP Setia fully feedback what they have earn from the social, back to
social by educates a better future. SP Setia expanding their business scope from Shah Alam
towards Johor, Bangsar, Semenyih; from Vietnam, China, to Melbourne. These expansions
brought SP Setia towards a high income company naturally bringing the line fly high in the
graph. Several government projects also helps SP Setia stay in profitable situation such as
switched land and build a government hospital, and seals KL Eco City Project with DBKL.
These will not only gain companys profit but also good image, and will improve future profit
gain. The economic environment in these 2 years was satisfying customer to buy new houses
or invest in building. This will indirectly add on some gain result for the profit.

The paid up capital of SP Setia Sdn Bhd


1600000
1400000

1374544

1200000
1000000
762524

800000
600000

762604
762606

The capital amount

504454

400000
200000
0
2007

2008

2009

2010

2011

The graph shows the paid up capital amount of SP Setia SDN BHD from year 2007 to year
2011. From year 2007 to year 2008, the company paid up capital has slightly increased from
504,454 to 762,524 which are approximately 51%. The increased in paid up capital allowed
the company can had more opportunity to develop new project.
The shortage in Malaysia made the company decided to move their business oversea to other
country. The company's had started to expand their business in 2007. In an effort to grow the
brand regionally, S P Setia embarked on its first international foray to Vietnam in 2007 when
it joined forces with the countrys top state-owned conglomerate, Becamex IDC Corp to
develop EcoLakes at MyPhuoc Industrial Park. The Group has also expanded its business into
Australia and Singapore and is exploring opportunities in China. Everything goes well until
year 2008.
In year 2008, SP Setia was attributed to lower gross margins and general overheads, as well as
marketing expenses. The global financial crisis brought consumer sentiment to an all time
low, even below the Asian Financial Crisis Levels. In the months of November and December
2008, sales dropped more than 70% to RM 30 million a month compared to the preceding
year. Some of the shareholder afraid their share price will drop, this make them like to sell out
their share. But some of the people do not think like this, they think that the times of crisis

present new opportunities. These results in people buying back their share and seek the
change that the company share might raise to a higher point. This made the company had no
worry about their paid up capital from their shareholder and this allowed the company had
enough capital continued to expand their business oversea.
The company increased its capital for only 80 which is 0.01% from year 2008 to year 2009.
Even it had only increased a little but the company had launched a lot of project in this year.
After the economic crisis, the government also had provided tender for the company to
continue their business in Malaysia.
In year 2009, the strength of the Groups sales is a testament to the resilience of the property
market, particularly that of Malaysia and the inherent attractiveness and desirability of the
Groups products. Leveraging on the strong demand for commercial and investment grade
properties, the Group has expanded into the commercial sector with projects such as
SetiaWalk Puchong and the upcoming Kuala Lumpur Eco City.
The year under review started on a cautious note amidst reports of a global financial
meltdown. The advent of the crisis in September 2008 affected consumer confidence which
resulted in low sales for the Group in the first quarter of the financial year. This makes the
consumer have no confidence to purchase the share of S P Setia because they worry the share
price still will drop after the economic crisis.

For year 2010, the paid up capital continue increase from 762,604 to 762,606. 2010 was an
outstanding year for the Group with a 40% increase in new sales and a 47% leap in net profit
from the preceding year. The results achieved can mainly be attributed to the innovative
marketing campaigns introduced by the Group during the year namely the Best for the Best
and Invest Setia Homes campaigns. Keeping to the Groups long-standing dividend policy of
paying out a minimum of 50% of its profit after tax to shareholders, the Board has
recommended a final dividend of 14sen per share for the financial year ended 31 October
2010.Together with the interim dividend of 6sen per share, total dividend for the year works
out to be 20sen per share, representing a payout of approximately.

The impressive sales numbers are a direct result of strategic decisions taken by management
over the last two years to invest substantially in value creation across all projects thereby
further enhancing the premium brand positioning the Group enjoys. Along with the innovative
marketing campaigns conducted, these proactive measures have enabled us to tap effectively
into the strong underlying demand for good properties fueled by the increasingly confident
business and consumer sentiment and a highly supportive financial sector. Projects which
contributed to the Groups strong performance in 2010 include Setia Alam and Setia Eco-Park
at Shah Alam; SetiaWalk at Pusat Bandar Puchong; Setia Sky Residences at Jalan Tun Razak;
Bukit Indah, Setia Indah, Setia Tropika and Setia Eco Gardens in Johor Bahru; Setia Pearl
Island and Setia Vista in Penang. The above projects provided a solid and resilient earnings
base for the Group, enabling us to explore new key growth drivers like luxury high-rise,
commercial developments and international expansion.

The good image that built up by the company let them no need to worry about the paid up
capital by the shareholder. The continuous project that developed by the company had give
them a good image toward the shareholder. Therefore, there always had people like to
purchase the S P Setia share due to the confidence given by the company.
In 2011, the paid up capital had reach 1374,544 which is a boost of 63% from previous year.
In June 2011, S P Setia previewed its first project in Melbourne, a high-rise condominium
development called Fulton Lane. The Autralian project's launch in November 2011 spurred S
P Setia to look at more opportunities in Melbourne and it then acquired another piece of land,
this time at the upmarket St Kilda Road for its second high-rise project Parque Melbourne. SP
Setia Bhd is proposing a placement of up to 15 per cent of its issued and paid-up share capital
to finance some of its existing projects, future expansion plans as well as working capital
requirements. The proposed placement will involve the issuance of up to 152.52 million new
shares, the company announce in a filing to Bursa Malaysia today. It also announce that part
of the proceeds would be used for existing projects such as the KL Eco City project, Setia
City project in Setia Alam, Selangor, and Fulton Lane project in Melbourne, Australia.
By choosing a good environment to develop their project also help the company had a
guaranty of the success in their project. The good management team in the company had
helped them planning for their next move. 2011 has been a year of exciting growth for the

group. All the existing projects are performing well and we will be seeing several new
projects coming on stream to further strengthen our sales pipeline. This excellent performance
can be attributed to the company strong branding, breadth and depth of product range as well
as geographical reach in all the key economic regions of Klang Valley, Johor Bahru and
Penang, which has placed the Group in good stead to continue to capture the solid underlying
demand for good properties in Malaysia. The good performance of it in year 2011 brings it a
great increase in their paid up capital. There have more people know about the company and
trust to be one of their shareholders. The more the shareholder buys from the company, the
more the capital for the company to continue on a new project.

Shareholders' equity
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
0
2007

Shareholders' equity

2008

2009

2010

2011

Shareholders equity perform steady from year 2007 to year 2009, amount from 1,
840, 883 to 2, 037, 221 only occur differences of 196, 338. When comes to 2010,
shareholders equity rise harshly and end up the graph with attractive position with the
amount of 3, 446, 442. Result of comparing between the two graphs line is 1, 060, 831. This
number shows that the successes of SP Setia in managing their shares.
The previous SP Setia is concentrated only in construction work. Till around year
2007, SP Setia changes their form with attaching development. When SP Setia is still only a
construction work firm, its equally competing in shares with other construction firm as well.
Thats the economic reason that made SP Setia remain their shares in marking time. Although
SP Setia did try to transform their mode in year 2007, but unluckily meet up with world
financial crisis. This natural environment locked SP Setia stay low in their development
programme and caused SP Setia keep main position in construction work. The low investment
when world financial crisis is another major caused that keep shares of SP Setia steady.
Although world financial crisis keep shares of SP Setia status quo, but it never bring shares of
SP Setia down to the valley point. This make sense that SP Setia is able to survive in world
financial crisis with the wisely use of new business strategic. Budget Malaysia for year 2008
benefits personally such as overcoming the incidence of double taxation in life insurance
business; removal of the service tax thresholds for professional, consultancy and management
services, and so on. With these conditions encouraging more investor to invest, SP Setia is
able to maintain their share performance well.
The pickup when year 2010 and year 2011. As graph shows the line climb up high
when end of 2011. The pickup point happens at year 2010 probably due to SP Setia overseas
and expansion of project. Launching new projects is definitely efficient in attracting investor

and a best way to boots up companys performance in a very short period. SP Setia
successfully pop-up their share value in a good timing as after world financial crisis. This
result that companys capitals strengthen in sudden and is able to face all the project had
planned in very smooth way. SP Setia done well in social by provides community service, Eco
project, and others. These will mark a sign in social and make social take notes on SP Setia; a
good image therefore was built. Good images of SP Setia cause investor to invest in
confidence, and construction project repose to SP Setia with relieved. Thats one of the
reasons for shares of SP Setia rose.
Aid of governments projects helps a hand in SP Setias share as well. The success of
tendering government project will also help in increasing share as free advertising to public.
Number of investor increase with the help of advertising. The reason for increasing share
easily gets from advertising because of good investing environment. A good investing
environment builds out by a nations situation. Malaysia in year 2010 and 2011 was upsurge
in investing and government policies encouraging people to invest. SP Setias share amount
reaches a fine height with the side factor of government and environment.
Side information, news that PNB throwing hard money into SP Setia. The majority
rises of SP Setias shares is caused by PNB investing. That affecting the shares of SP Setia
increase higher due to the attractive jump pumped by PNB. In other way, it is a kind of
helping SP Setia in their share result.

return on equity
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2007

return on equity

2008

2009

2010

2011

Sounds that SP Setia having a nice time in a perfect world from the review report of
profit attributable to shareholders and shareholders equity, but actually not exactly that
perfect.
Graph above shows SP Setias return on equity, the ratio analysis results of profit
attributable to shareholders and shareholders equity. A plunge showed from year 2007 to year
2009 with the differences in percentages of 5.72%. Recover happened in year 2009, and soar
towards year 2010, rises of percentage 3.10%. At the end of the graph, graph line drop back
and almost touch with the bottom line of 2009, drop percentage of 1.99%.
Year 2007 to year 2008 when SP Setia was still trance as a construction firm, the profit
narrowed down and ends up with decreasing the return on equity. SP Setia takes their
transformation between year 2008 and year 2009 from a construction firm to development.
Although the transformation takes place in world financial crisis, but its effect is still workout.
It maintains the shareholders equity and slowed down the drop of profit attributable to
shareholders. With the help of Budget Malaysia 2008, SP Setia is able to hold their
shareholders with the benefits provided, and decrease the loss of profit by minimize expenses.
In year 2009, although the profit not growing up yet, but it stops keep on rolling down with
the increases of investor are supporting SP Setias future project.
The scroll up and dramatic fall in year 2009 to year 2011. High profit with low
shareholders equity equals to each shareholder divided into big profit earns. It also means
that high profit with high shareholders equity equals to low profit will be divided to each
shareholder. During year 2009, low numbers of investor in SP Setia due to lack of confidence
in investing after the world financial crisis. But the building units sales were reach to a high

peak and the profit of the company was thick. With a good profit earns statistic, SP Setia
successfully attracted large amount of investor to support their further project. Huge force of
investment was bringing in by PNB and these reasons result that unbalance of profit share
occur. End up with the only method is lowered down the profit share, and thats the factor that
brought down the line in the graph.
Another reason that makes a jump in year 2010 would be the project done by SP Setia,
the environmental friendly project, Eco city. This will indirectly increase the companys good
image and assist to reach the sales target. Fall in year 2011 probably caused by Budget
Malaysia made after world financial crisis. It encourages people in investing, in a way means
that company profit distributed lesser to each shareholder.

Total assets employed


6000000
5000000
4000000
Year

3000000

Total assets employed


(RM'000)

2000000
1000000
0
2007 2008 2009 2010 2011

The graph shows the total assets employed against the year 2007, 2008, 2009, 2010 and ends
at 2011.
Total assets employed is basically assets needed to run a company. The formula used to
calculate total assets employed is
Total assets employed= (current assets + fixed assets) liabilities
The general trend show a slow rise in total assets employed in each consecutive year. Which
means to say that SP Setias assets employed is still in the growth stage where as the company
grow bigger there is an increase in fixed assets such as property, plant and equipment which is
needed for the companies growth. An example, as a property development company, SP Setia
would require more equipment such as tractor and cranes in order to run a growing business
2007
This year SP Setias total employed assets is RM3,133,353,000 which is the lowest of the
years this report is researched on. This year increase is the product of increased investment
into long term investments such as securities. In this case, SP Setia has acquired multiple
securities in other companys making them the majorly owned subsidiary in Setia International
Limited which is based in the British Virgin Islands and share purchases in companies such as
Exceljade Sdn. Bhd and Kemboja Sdn. Bhd. making them the major share holder of a joint
controlled entity

2008
This year the total employed assets rose by RM427,531,000 to RM3,560,884,000. SP SETIA
has acquired a foothold in Sabah through the procurement of land by agreeing in the
development of a 1 billion transportation hub and a property project named Aeropod. Its also
help the companies goal to diversify into other high growth states in Malaysia
2009
Next the total employed assets continue to rise by RM391,367,000 to RM3,952,251,000. SP
Setia has set up a office branch in Singapore thus diversifying themselves in another country.
In Vietnam itself, SP Setia has begin cooperating with Saigon High Tech Park Development
Company to develeop a land of 79 acres in Ho Chi Minh city.
2010
Next the total employed assets rises to RM4,386,062,000 by RM 433,811,000. In China, SP
Setia breached the market through joint venture with Hang Zhou Ju Shen with the purpose of
developing a 5 acres land. They have manage to capture niche markets in high rise building
construction with their successful launch of the Setia Sky Residences and Setia Walk. They
have also launched a green commercial centre, Setia City with a development value of
roughly 5 Billion. This development have manage to attract Australian investors into the
development of a Setia City Mall, which would then cause a chain reaction by attraction
franchises such as Golden Screen Cinemas and Parkson to open up shop at their premises
2011
Lastly the total employed assets peaked at RM5,585,657,000 with an increase of
RM1,199,595,000 which also show the highest rise in the period of 5 years. From the
acquisition of Exceljade Sdn Bhd. ,SP Setia has came out with the development of Setia Sky
residence which is the development of a high end condominium. Moreover it has acquired a
29,440 square ft land to be development into a high- rise condominium named 18 Woodsville.
They then go on into acquiring a 201,285 sq ft land to be developed into Eco Sanctuary
condominium in Chestnut Avenue.

Total Net Tangible Assets


RM4,000,000.00
RM3,500,000.00
RM3,000,000.00
RM2,500,000.00
Total Net Tangible Assets

RM

RM2,000,000.00
RM1,500,000.00
RM1,000,000.00
RM500,000.00

RM0.00
2011 2010.5 2010 2009.5 2009 2008.5 2008 2007.5 2007
Year

Graph 1.1
Total Net Tangible Assets also known as company physical assets which includes physical
plant and monetary reserves of the company, but do not include such intangible assets as
patents.

Total assets and total Liabilites


RM9,000,000.00
RM8,000,000.00
RM7,000,000.00
RM6,000,000.00
RM

RM5,000,000.00

Total liabilities

RM4,000,000.00

Total Assets

RM3,000,000.00
RM2,000,000.00
RM1,000,000.00
2007

2008

2009

2010
Year

2011

RM0.00

Table 1.2
Formula
Total Net Tangible Assets = Total assets of the company (Balance Sheet) Total liabilities
Intangibles Assets
For Year 2007 to 2008, the company total net tangible assets has slightly increase, S P SETIA
BHD GROUP had decrease the amount of property, plant and equipment and investment
properties in year 2008, but at the same time few other non-current assets increase such as
amounts owning by subsidiary companies and investment in jointly controlled entities. In year
2008 for current asset, company receives trade about RM3066000 which are new for the
company. Generally total assets of the company had increase about 24% which show this
company had made progress and enlarge their capacity for year 2008. At the same time the
total liabilities of SP Setia BHD group also increase. This is because the serial bonds
introduce on the previous year that require giving back fraction of dividend to customers
about RM460, 577,000.
In year 2007, SP Setia BHD Group had successive to achieve a peak and managed to doubleup their profit after tax in the 10 years since the company changes it focus from construction
to property development. The company had started to build luxury low-rise building that is
popular that time. They also acquired 6 pieces of land on that year and the brand had acquired
high publicity in Malaysia. On the same time, a new policy out by government of Malaysia
had introduced, that is allow monthly EPF withdraw to fund mortgages that bloom the sales of
property. The most glory part in year 2007 for SP setia had developed Setia Eco Park in Shah
Alam which was named the Worlds Best Master Plan Development in FIABCI.
In year 2008 is a tough year for SP Setia BHD Group, earlier in the year, Malaysia facing
rising inflation and political upheaval which affect most of the sectors including development
sectors. Another concerned in that particular year is fuel prices reached peak and the price
become unstable. As we know, development and construction sector are highly dependence on
fuel, cost of material, transportation, machinery and other work will affect by the price of fuel.
So in that year, most of the projects of SP Setia Berhad were affected. However the company
took a few strategically move such as delay some project and wait for a more stable state to
continue work and the company choose to purchase the material from a better source and

offer to subcontractor so the project may continue as planned. In almost end of the year, cost
of construction material had reached stability state so most of the project able to continue the
progress left behind. In year 2007, global economy was in downstream. Sales of the property
on that year drop dramatically. However a few key infrastructure and amenities had succeeded
to bring a total sale of RM1.4 billion for the company in that year and achieve the outstanding
result. The managing group of SP Setia Berhad had able to target a high return property and
mainly focus on Shah Alam, Johor, and Penang. In this year their flagship property was Setia
Alam located in Shah Alam had bring sales about RM267 million.
For the year 2008 to 2009, overall there had increase for total assets and Amounts owing by
jointly controlled entities increase obviously that is about RM15, 000,000. For the total
liabilities also increase, SP setia Group had choose to increase long term loan to enable more
cash flow for further development.
The impact of economic crisis had causes major effect to SP Setia Berhad Group. In month of
November and December 2008, sales dropped more than 70% to RM30million a month. The
company did not choose to give up at that time and they learned it that this is another new
opportunity a loan package named Setia 5/95 Home Loan Package had been introduce to
overcome the problem facing on that time. For the early stage the loan failed to do the magic
and the program was learned by other competitor on that period, unexpectedly after several
month the campaign proved to be a huge success with Group sales hitting a record totaling
RM1.65 billion for year 2009. After the hugh success, the culmination of World Environment
Day was the forming a strategic partnership with UTAR to sponsors an academic Chair in
Environmental Engineering and Green Technology at RM1.24 million over the next five
years. After the succeed of Setia Alam launching in year 2008, a new luxury high-rises Setia
Sky Residences is llaunched in Kuala Lumpur and 90% unit were sold in June cost about
RM680 psf. In South, another flagship property was launched that is Setia Tropika Johor that
recorded total sales of RM152 million and creating local brand names in Johor.
For year 2009 to 2010, total asset of the Group shows growth. It is because in year 2009, the
group had succeed reduce most of the debt and about three times increase of the other
receivables, deposits and prepayments to RM270, 731,000 and the cash and bank balances
also increase from year 2009. Besides that, total liabilities also increases and it is causes by
redeemable serial bonds and redeemable cumulative preference shares.

In year 2010 , SP Setia Berhad Group had set a new target to achieve that is obtain building
certified under Malaysias Green Building Index. Setia City is their main focus in this year.
They continue to extend their wealth by continue build semi-D houses and bungalows which
was the stronghold for their company for such long time. Rainwater-harversting system and
Building-integrated PhotoVoltaic system is introduced to shows the group are well concern
and aware to the environment. The Group was the top selling property in Johor in 2010 for
recording a Rm607 million with selling 1614 units. The Group followed the trend of saving
the environment and succeed to attract consumers to purchase their property.
In year 2011, total asset had been increase about 27% which hit almost RM5, 585,657,000, for
non-current assets Land held for property development and investment properties had increase
dramatically. However total liabilities had decrease in year 2011. Redeemable serial bonds
redeemable cumulative preference share was not given in the year 2011 and also bank
overdrafts had drop about 70% and become RM36,435,000. Total liabilities for year 2011
only hit RM2,146,171,000, for some cases it show good sign of debt of the Group become
lesser.
In year 2011, project in central region contributed 50% of earnings while the southern region
contributed 29%. This show the Group investment had succeeded. Besides that construction
and wood based manufacturing activities on the year increases this causes cost of construction
was lower that time and easily can obtained construction materials. SP Setia BHD Group also
made some investment for many potential area such as Cyber jaya and Tebrau which located
in Johor Bahru. Furthermore, oversea expansion also help the Group earn profit about
167million at Australia and 49million at Vietnam.

30
25
20
15

Earning per share(sen)

10
5
0

2007

2008

2009

2010

2011

This graph shows the earning per share of Sp Setia Company from 2007 to 2011.

Earnings per share are the amount of earnings per each outstanding share of a companys
stock. It serves as an indicator of a companys profitability.
Formula

2007
In 2007, the Group sold 3,303 units of properties with a total sales value of RM 1.2 billion. It
is boosted by consumer sentiments and spillover benefits from the liberalization of the
property market. In this year, the group believed in brand equity through the strategic
positioning of their products and strengthening its presence. Other than this, their projects
made significant headway oversea with country-wide festive celebrations and exciting
cultural acts and mammoth concerts.
2008

The earnings per share from 2008 to 2009 are decreased from 21sen to16.8sen. This year was
full of challenges and uncertainties. In 2008, Malaysia went through a period of political
upheaval due to the rise in inflation and spike in fuel prices. Many of the industries suffered
with slowed down work and the changes of construction materials become higher, this cause
the people became more cautious to purchase their products. In this situation, Sp Setia had
taking a wait and see attitude, this can allowed them to avoid the over pricing of overall
contract costs during the period. In the final quarter of the year, the construction material cost
began to stabilize.

2009
In 2009, the earning per share of Sp Setia is increased from 16.8sen to 24.8sen. This company
had experienced exponential growth in terms of infrastructure and amenities. They had
successfully reduced the debt and the net income also began to increase from 2009. This
significant funding commitment demonstrated the strong confidence of the customer to the Sp
Setia Company. The good image of the company also brought them more net profit and
investor to bring in the investment.
2010
From 2010 to 2011, the earning per share is decreased from 24.8 to 19.2. Setia City had set an
ambition of creating a meaningful environment for their customers. They started to focus in
helping preserve and improving the environment. By followed this new concept, some of the
development profit is decreased. It was due to the adaptation period of the all new green
environment concept.
2011
In 2011, the group has increased 42% with RM3.29 billion sold compared to RM2.31 billion
set in 2010. The group profit was RM322.4 million after taxation in 2011. It is the highest
profit achieved by Sp Setia for the financial year. The groups construction and wood-based
manufacturing activities has contributed to the earning achieved. In January 2011, the group
has purchased 265.7 acres of land in Johor Bahru. This purchase had shown that the
acquisition of the group was with the groups strategy continued to grow. In the end of this

year, they also acquired a 673-acre of land in Rinching, Semenyih. This acquisition enable Sp
Setia continued having a success future for many years. During the financial year, the group
started to extend their development into north of Australia, which call St Klida, Melbourna.
They also bought 2.23 acres of land and looked for the opportunity to invest properties at
there.

Gross Dividend Per Share

Gross Dividend Per Share(sen)


30
25
20
15
10
5
0
2007

2008

2009

2010

2011

Introduction
Dividends are the share of the profits of a company which is received by the
shareholders. The dividend policy or how much dividend the shareholders receive is
determined by a number of factors. For example, the general state of the economy, the
financial needs of the company and the liquidity position. The graph above shows the gross
dividend per share received by the shareholders of SP Setia from the year 2007 to 2011.
2007 was a very successful and profitable period for SP Setia. One of the highlights
for that year was a joint venture agreement with, Becamex IDC Corp, one of Vietnams top
conglomerates, to develop their first overseas project. In addition, one of SP Setias top
projects, Setia Eco Park in Shah Alam, won the Worlds Best Master Plan Development in the
Federation of International Real Estate (FIABCI)s International Prix dExcellence Awards
2007. This underlined the premier status of Setia Eco Park as a pioneer of ecologicallyattuned master-planned developments, not only in Malaysia but also at the international stage.
On top of that, Tan Sri Liew Kee Sin, the managing director of SP Setia was voted as The
Property Man of the Year in FIABCI Malaysia Property Awards 2007. Sp Setia were also
awarded a a RM190 million contract by the Ministry of Home Affairs Malaysia (KHEDN) to
relocate its Johor Bahru headquarters to a 16.7-acre piece of land right next to Setia Tropikas

CBD. All these events increased the revenue of the company which allowed the company to
carry out a more liberal dividend policy, which resulted in the gross dividend reaching a high
of 25 cents per share.
However, in 2008, SP Setia faced a huge stumbling block in the form of the world
financial crisis. Malaysia also went through a time of political upheaval and rising inflation
due to the financial crisis. This was worsened by the jump in fuel prices, many industries
along with the construction sector suffered. Work slowed down at construction sites as prices
of construction materials hit an all-time high. The Groups projects were also affected and this
resulted in a loss of revenue for the company. Furthermore, property sales slowed down as
citizens became more cautious about making property purchases. 2008 was not a complete
disaster as the 2,525-acre township in Shah Alam continued to record strong sales of RM267
million for the year ended 31 October 2008, despite a 10% to 30% increase in prices of newly
launched products. Their project down south in Johor, Setia Tropika, also reached sales of RM
128 million for the year ending October 2008. Thus, the period of inflation coupled with the
the unfavourable market conditions caused SP Setia to practice a more conservative dividend
policy. The amount of dividend per share received by the shareholders dropped to RM 0.17
per share.
After the world economic meltdown in 2008, 2009 was one of the busiest years for SP
Setia. The launch of SP Setias first luxury high-rise condominium project right at the heart of
Kuala Lumpur, known as Setia Sky Residences, signalled the coming of another product to
the SP Setia range. Besides that, the company entered into a joint-venture contract with
Hangzhou Ju Shen Construction Engineering Limited in June 2009 to conduct out a mixed
real estate project in the growth corridor of XiaoShan, Hangzhou in the province of Zhejiang,
China. Their EcoLakes Project in Vietnam also proceeded without any problems, leading to
the acquisition of a 27 acre piece of land in Vietnam to be used for a mixed-use project. SP
Setia also opened a Marketing Office at Harbourfront Place in Singapore to serve their
customers there better and to introduce them to their other projects. Even though 2009 was a
positive year for the company, SP Setia was still feeling the effects of the financial crisis from
the previous year. Hence they still practiced a conservative dividend policy to build up the
companys reserves to absorb future shocks as well as solidify the companys liquidity
position. The dividend allocated to the shareholders dipped slightly to 14 cents per share.

During 2010, SP Setia conducted a unique marketing strategy by unveiling its


partnership with Firefly in March 2010. This step was a first in the property field, where all
seven of the airlines aircraft advertised the SP Setia brand on the outside as well as the inside
of the plane. This presented the chance to introduce the best of Malaysian properties to both
locals and foreigners. Furthermore, the Group announced the purchase of a 46,715 sq ft piece
of land in the heart of Melbournes Central BusinessDistrict (CBD) for RM92.4 million. It
allows the company to meet the needs of our Malaysian customers, many of whom have
children who are intending to further their education in Melbourne and are therefore looking
to invest in properties there. In Johor Bahru, all four projects under the SP Setia brand namely,
Setia Tropika, Setia Indah, Bukit Indah Johor and Setia Eco Gardens continued to lead the
market both in terms of total sales achieved at RM607 million as well as creativity and
product innovation. Therefore, their productive operations throughout 2010 provided SP Setia
with a significant increase in revenue, which in turn increases the dividend attributed to their
shareholders at a rate of 20 cents per share.
2011 was the most profitable year for SP Setia among the 5 year duration from 20072011. SP Setia created an innovative marketing strategy by launching a Setia App for
Blackberry, iPhone, iPad, Android and Java devices. This move aims to offer a smartphone
application thats informative and relevant to homebuyers. In addition, SP Setia finally
launched their long awaited KL Eco City after years of hardwork. The 24 acre site is situated
just opposite Midvalley and is to be the countrys first green development targeting both the
Malaysian Green Building Index (GBI) and US-based Leadership in Energy and
Environmental Design (LEED) certifications when it is completed in 10 years time. In
January 2011 the company announced the purchase of 265.7 acres of land in Johor Bahru for
RM125.78 million. This strategic property is located in the Tebrau corridor and is being
planned as their second commercial-cum-industrial project to be known as Setia Business
Park II. SP Setia also acquired 268.11 acres of prime freehold land in Cyberjayas Flagship
Zone where they are looking forward to develop the land based on the eco-themed
development design of their widely successful Setia Eco Park in Shah Alam. However, SP
Setia allocated a reduced dividend policy of RM 0.14 per share for their shareholders to
provide funds for profitable investment opportunities.

Net tangible assets (NTA) are described as the total assets of a company, excluding intangible
assets such as goodwill, trademarks and patents minus total liabilities. The NTA/share value is
used to determine, in theory, the money that each shareholder would receive if the company
was forced into liquidation and all of the assets were sold at that point in time.

Formula: NTA/share = net tangible assets number of shares on issue

In 2007, SP Setia BHD Group has achieved the highest the net total tangible asset per share
which is 2.74. One of the reasons was corporate exercise and gaining global acclaim. During
this year, the group undertook a cooperate exercise involving the issuance of redeemable
serial bonds with detachable warrants along with the issuance of bonus shares. The
500million raised allows SP Setia BHD Group fund its plans to become an integrated region
real estate group .SP Setia BHD Group was again named Best Developer in Malaysia by the
Edge Malaysia in its top Property Developer Awarded 2007 and Euro money in its Real Estate
Awards 2007.There was a rising inflation and the spike in fuel prices, Malaysia went through
a period of political upheaval. Many industries suffered with slowed down work and the
changes of construction materials high, and cause the people became more cautious to
purchase the products. Therefore, SP Setia BHD Group has faced a big drop during 2008.

After 2008, there was a slightly increased in 2009. SP Setia BHD Group has launched its
luxury condominium project Setia Sky Residence in Kuala Lumpur. Besides, they had build
Tesco Hypermarket in South Johor Bharu in Bukit Indah. Furthermore in North Penang, the
group has increased land bank by buying two plots of land one in Sungai Ara and Jesselton
area. First, the venture oversea in Vietnams and this created the opportunity for SP Setia BHD
Group to further expand its business in Vietnam through the acquisition of 27 acre place of
land from Became x IDC.
The net total tangible asset per share increased gradually in 2010 which is 2.15. The most
important fact which cause the total asset per share raised is branding and value creation. SP
Setia BHD Group took a new height in marketing its properties when it unveiled a unique
partnership with Firefly in March 2010. A first in the property industry, the tie-up entrained all
seven of airline's European-macle AIR-500s carrying the SP Setia brand internally and
externally. The tie-up beneficial in increasing awareness of SP Setia brand and enable to
promote the latest properties in the air. This was a perfect platform to reach new markets in
the country and around the region as the airline had more than 72 flights a day carrying over
4000 passengers. They also had the opportunities to introduce the best of Malaysia properties
to local and foreign alike. Moreover, the growing abroad also a main reason caused the net
total tangible asset per share increased in 2010. March 2010 the SP Setia BHD Group
announced the purchase of 46715 sq ft piece of land in the heart of Melbourne's Central
Business District (CBD) for RM924million.This new venture called Fulton Lane. Melbourne
is in line with the Group strategy since 2007 to extend its reach beyond Malaysian shores.
In 2011, the Setia City has set an ambition of creating a meaningful environment for
their customers. They started to focus in helping preserve and improve the environment. Setia
City has set an ambition of creating a meaningful environment for their customers. SP Setia
BHD Group had 240 acre integrated commercial hub and the Setia Alam Township in Shah
Alam aims to be the first green integrated commercial development in the country. Setia City
has set an ambition of creating a meaningful environment for their customers. They started to
focus in helping preserve and improve the environment. With this new concept, some of the
development profit was decreased. It was due to the adaptation period of the all new green
environment concept. SP Setia BHD hoped to set a new benchmark in green development in
with a gross development value RM 5 billion, the freehold development comprises hotels,

serviced apartments, corporate office towers and retail malls and need take 10 to 15 years. So,
their profit will be affected during this year and caused a slightly decreased in 2011.

SP SETIA BHD STOCK DETAIL FROM 2007 TO 2011

Most investors believe that the changes of stock share prices are very sensitive to
economic news. Investors found out that the stock returns are constantly exposed to
systematic economic news. If a companys stock is affected by systematic economic news,
there will be no profit returned in order to compensate the risk. Besides that, developments of
a company will also affect the price of its stock. This includes earning reports, the
development of current plans or a new innovative plan or the appointment of a new company
director. The graph above shows the share price of SP SETIA BHD GROUP from 2007-2011.
2007
We can see that the share prices during 2007 were at its highest, throughout the 5 year
duration from 2007-2011. SP Setia acquired 6 pieces of land including 156 acres of freehold
land in Cyberjaya as the site of a new Eco brand development to be named Setia Eco Villas.,
with an estimated gross development value of RM1.2billion. In 6 June 2007, Setia Eco Park
was named the Worlds Best Master Plan Development by the Paris-headquartered Federation
of International Real Estate. Furthermore, on 27 October 2007, SP SETIA GROUP Managing
Director and Chief Executive Officer Tan Sri Dato Sri Liew Kee Sin was named Property
Man of the tear 2007. This positive news attracted the attention of many investors to invest in
SP SETIA BHD GROUP, which increased the share prices of the company. The high prices of
stock also represented the high operations of the company.

2008
Year 2008 was a difficult year for many companies from a financial aspect due to the
world financial crisis. Without a doubt, Malaysia was also affected by the world financial
crisis. During that year, fuel prices reached peak and the price of materials in Malaysia
became unstable. Hence most of the projects of SP SETIA BHD GROUP were affected
causing delays to some of the construction projects. This is because to construction works are
highly dependent on fuels and cost of materials. Thus, the share prices of SP SETIA BHD
GROUP also dropped significantly due to the world financial crisis.
2009 to 2011
After the 2008 world financial crisis, SP SETIA BHD GROUP started several plans to
increase its development, such as introducing the attractive 5/95 Home Loan Package. SP
SETIA BHD GROUP also ventured into the overseas market by initiating projects in Vietnam
and China. On 20th May 2009, SP SETIA BHD GROUP was again awarded the Worlds Best
Master Plan Development. Besides that, SP SETIA also won affirmation and glory through
other accolades, such as in 29 March 2011 where they were named Overall Best Employers in
Malaysia 2011.Three months later SP SETIA BHD GROUP was recognized as one of the Best
Employers in the Asia Pacific 2011. Overall, after the 2008 world financial crisis, SP SETIA
BHD GROUPs development and income profit was starting to see better days. It was
successful in attracting investors to invest their confidence belief in the SP SETIA BHD
GROUP. Therefore, it is clear that we can see a growth in the share prices of the company.
In conclusion, investors sentiment or confidence can cause the share prices to rise or
fall. Therefore, the share prices will generally be affected by a companys development, which
in turn will affect the confidence of investors. For example, if a companys earnings go up, so
will the share prices. If there is any good news regarding the company or if the company
received an award, the share prices will increase also. World events such as financial crisis or
the fluctuation of materials and fuel prices, can also affect share prices indirectly and they
frequently occur in chain reactions.

Conclusion
As the outcome of this assignment report, the financial report of SP Setia can be used
as the guideline for the development of the company. Present and potential investors can
acknowledge the financial operation of the company through reading the companys financial
report.The information shown in the financial report is useful for the investors to in making
decision to invest the company.
Variation of the financial of a company is always involved of social factors, economic
performance, political, environmental. These can be seen through the investigation and
history. The programs that are practiced by the government always bring a big impact to the
construction industry. One of the proofs is the Malaysia My Second Home which was
launched in 2006 has stimulated the property market in Malaysia. Economic of the region also
influence the market and financial performance of one company. In example, global economic
crisis in 2008 has brought a series of problems including inflation of construction material,
project slow down and caused the nations to tighten their belt in purchasing property. The
financial performance of SP Setia in 2008 was also worsen following the impact of economic
down turned.
In the other aspect, we realise that SP Setia and other developers in the construction
industry play important role in developing a country. The construction industry is often seen
as a driver of economic growth especially in developing countries. Construction activities and
its output is an integral part of a countrys economy and it also acts as a driver for the
development of industrial field. Besides that, construction field not only provide infrastructure
and sanctuary for people, it also generates employment to a country because construction
industry needs a lot of human resources and material resources. Other industries will also be
stimulated following the development and needs of construction industry such as cement,
brick and steel manufacturer.
In conclusion, one company should practices good financial management in order to
develop and attract investors to invest their business.