KUALA LUMPUR (Dec 17): CIMB Research has maintained its “Hold” rating on S P Setia Bhd at RM3.24 with a lower target price of RM3.34 (from RM3.38) and said S P Setia’s FY10/14 results were in line as final core net profit made up 97% of house forecast and 101% consensus’s estimates.

In a note Dec 16, the research house said new sales of RM4.6 billion were 44% lower year-on-year (y-o-y) and missed its full-year sales target of RM5 billion by 8%.

“We fine-tune our EPS forecasts for housekeeping purposes, but keep our target price basis of a 25% discount to RNAV (lowered slightly from RM4.51 to RM4.45).

“S P Setia continues to be a Hold as the timing of its key re-rating catalyst, i.e. potential M&A activity, remains uncertain.

“Our picks for property sector exposure remain Mah Sing Group and Eco World Development,” it said.