Friday 29 Mar 2024
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KUALA LUMPUR (March 9): Maybank IB Research has maintained its “Buy” rating on S P Setia Bhd (SPSB) (fundamental: 1.40; valuation:1.20) at RM3.42 with an unchanged target price of RM4.07, saying the property developer's 1QFY10/15 results were likely to come within expectations.

In a results preview note today, the research house said SPSB’s 1QFY15 net profit, due for release on Wednesday, could come in at RM100 million-RM110 million (-24% QoQ, +3% YoY), accounting for just 15%-18% of house full-year estimate.

“However, earnings should start picking up strongly from 2QFY15 onwards on the recognition of lumpy contributions from its Australian project, Fulton Lane.

“As at Dec 2015, SPSB has locked in new property sales of RM837 million, or 18% of its sales target of MYR4.6b for FY15. A big chunk of the Nov-Dec 2014 sales came from Battersea Power Station (BPS),” it said.

The research house said SPSB’s domestic launches received decent take-ups; FY15’s RM4.6 billion sales target (flattish y-o-y growth) remains intact.

“A defensive stock during uncertain times. Maintain earnings forecasts, RM4.07 target price and Buy rating,” it said.

At 12.16pm, SPSB was flat at RM3.42 with 67,700 shares done.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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