January 31, 2011

SPSETIA - SP Setia remains a 'sell', says ECM

Stock Name: SPSETIA
Company Name: SP SETIA BHD
Research House: ECMLIBRA

SP Setia Bhd remains in the 'sell' zone despite the positive acquisition of a 106.2 hectare (262.5 acres) land in Tebrau, Johor, last Friday, ECM Libra Investment Research said today.

It target price was at RM6.00 per share. "We are not imputing any earnings from this new project into our model yet, until there is more clarity on the development timeline," the research house said in a note.

The land, to be developed as a mixed township, is expected to
generate a gross development value (GDV) of at least RM700 million, ECM Libra added.

It also expects the project to be launched in FY12 with the contribution commencing from FY13 onward.

With the new acquisition, SP Setia will have six projects in Johor. -- Bernama

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