Company Name: SP SETIA BHD
Research House: OSK
KUALA LUMPUR: OSK Research maintains its Take Profit call on SP Setia with a current year (CY10) target price of RM3.59 based on 1.69 times CY10 price/ net tangible assets. It said on Friday, March 19 that SP Setia's 1QFY10 annualised results came in 29% below its expectation and 23% below that of consensus. "This was primarily due to the seasonal slower progress billings in the quarter as well as much lower profit from investment activities," it said. OSK Research said the 1QFY10 year-on-year turnover and net profit improved significantly by 22.5% respectively on the back of much improved new property sales. Quarter-on-quarter turnover and net profit, however, fell by 8% and 33% respectively. These were mainly due to certain elements of seasonal factor. However, progress billings from its recent impressive improvement in new property sales will likely to pick up more steam in the later quarters, it maintained its earnings forecast for now, OSK Research said.