Stock Name: SPSETIA
Company Name: SP SETIA BHD
Research House: BIMB
S P Setia Bhd
(March 21, RM6.12)
Maintain 'trading buy' at RM6.07 with target price of RM6.07: S P Setia Bhd posted strong results for 1QFY11. Over the period, net profit and revenue were up by 62% and 43% year-on-year respectively. In total, its three months' earnings account for about 25% and 23% of ours and consensus estimates.
The strong result was mainly driven by higher sales from its matured property projects such as Setia Alam and Setia Eco-Park as well as from its other ongoing projects such as Setia Sky Residence, Setia Walk, Bukit Indah, Setia Indah, Setia Tropika, Setia Eco Gardens, Setia Pearl Island and Setia Vista.
Sequentially, the group's 1Q net profit dipped slightly on the back of 7% drop in the group's revenue. In addition, the lower quarterly revenue was partly attributed by the gain in disposal of investment property which was done in the previous corresponding period.
Meanwhile, pre-tax margin for the quarter expanded from 14% to 17% due to higher margin recognition from high-end property and commercial property segment.
The group managed to secure an impressive RM737 million worth of unbilled sales during the quarter and RM953 million as at Feb 28, 2011.
This year, the group is targeting to achieve RM3 billion worth of new sales, which will be supported by the upcoming new launch of KL EcoCity plus all its maturing projects such as Setia Alam and Setia Eco-Park as well as its ongoing projects in Johor and Penang. Based on this quarter's strong and favourable economic condition, we remain optimistic that the group will be able to achieve its RM3 billion sales target for this financial year.
Backed by buoyant property market sentiment and underpinned by the bullish outlook on the group's ambitious unbilled sales target, we are maintaining our 'trading buy' call on the stock with an unchanged target price of RM6.07. ' BIMB Securities Research, March 21
This article appeared in The Edge Financial Daily, March 22, 2011.
Company Name: SP SETIA BHD
Research House: BIMB
S P Setia Bhd
(March 21, RM6.12)
Maintain 'trading buy' at RM6.07 with target price of RM6.07: S P Setia Bhd posted strong results for 1QFY11. Over the period, net profit and revenue were up by 62% and 43% year-on-year respectively. In total, its three months' earnings account for about 25% and 23% of ours and consensus estimates.
The strong result was mainly driven by higher sales from its matured property projects such as Setia Alam and Setia Eco-Park as well as from its other ongoing projects such as Setia Sky Residence, Setia Walk, Bukit Indah, Setia Indah, Setia Tropika, Setia Eco Gardens, Setia Pearl Island and Setia Vista.
Sequentially, the group's 1Q net profit dipped slightly on the back of 7% drop in the group's revenue. In addition, the lower quarterly revenue was partly attributed by the gain in disposal of investment property which was done in the previous corresponding period.
Meanwhile, pre-tax margin for the quarter expanded from 14% to 17% due to higher margin recognition from high-end property and commercial property segment.
The group managed to secure an impressive RM737 million worth of unbilled sales during the quarter and RM953 million as at Feb 28, 2011.
This year, the group is targeting to achieve RM3 billion worth of new sales, which will be supported by the upcoming new launch of KL EcoCity plus all its maturing projects such as Setia Alam and Setia Eco-Park as well as its ongoing projects in Johor and Penang. Based on this quarter's strong and favourable economic condition, we remain optimistic that the group will be able to achieve its RM3 billion sales target for this financial year.
Backed by buoyant property market sentiment and underpinned by the bullish outlook on the group's ambitious unbilled sales target, we are maintaining our 'trading buy' call on the stock with an unchanged target price of RM6.07. ' BIMB Securities Research, March 21
This article appeared in The Edge Financial Daily, March 22, 2011.
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