March 18, 2011

SPSETIA - HDBSVR maintains Buy on SP Setia, TP of RM7.90

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

KUALA LUMPUR: Hwang DBS Vickers Research said SP Setia's 1QFY11 net profit came in at RM62m (+62% on-year, +10% on-quarter ex-exceptional), constituting 22% of its'' estimates respectively.

The research house said on Friday, March 18 that SP Setia's EBIT margin continued to improve to 17% (+2.9 percentage points on-year, +3.6 percentage points on-quarter) in spite of higher selling & marketing expenses (+158% on-year ), driven by increased ASP and more meaningful contribution from newer projects.

'We expect earnings momentum to continue to build driven by record ~RM2.2bn unbilled sales and new launches,' it said.

HDBSVR reiterated a Buy and TP of RM7.90, based on 5% premium to RNAV of RM7.55 (to factor in more earnings-accretive land acquisitions). Fully diluted RNAV post placement and one-for-two bonus issue is estimated at RM4.80.

No comments:

Post a Comment