Stock Name: SPSETIA
Company Name: SP SETIA BHD
KUALA LUMPUR:SP Setia Bhd's shares declined three sen to
RM3.05 at mid-afternoon today despite the company being successful in the tender for the 1.25-hectare freehold land along Jalan Ampang worth RM295 million.
The counter had opened in the morning three sen higher at RM3.11. As at 3 pm today, a total of 1.35 million shares changed hands.
The land is located in Embassy Row, next to Menara HSC and is situated less than one kilometre from the Petronas twin Tower.
Kenanga Research, in a note to Bernama today, said the project, with a gross development value of RM1.04 billion, will feature an integrated commercial development.
"We maintained a 'market perform' call on SP Setia. Although there are catalytic projects at hands, it appears that SP Setia's liquidity issues are affecting its share price negatively," it said.
Hong Leong Investment Bank (HLIB) said the acquisition was not the best of time as other developers had been holding off their launches in the KLCC/Embassy area.
"SP Setia can also expect to have close to RM300 million sunk into the land, while having to wait at least two years before recouping any cashflow," the research house said in a note to Bernama.
Fortunately, SP Setia still has another RM760 million of gearing headroom before net gearing hit the 0.5 time threshold, it said.
HLIB has maintained its 'hold' call on SP Setia and unchanged target price at RM3.17. -- BERNAMA
Company Name: SP SETIA BHD
| Research House: HLG | Price Call: HOLD | Target Price: 3.17 |
KUALA LUMPUR:SP Setia Bhd's shares declined three sen to
RM3.05 at mid-afternoon today despite the company being successful in the tender for the 1.25-hectare freehold land along Jalan Ampang worth RM295 million.
The counter had opened in the morning three sen higher at RM3.11. As at 3 pm today, a total of 1.35 million shares changed hands.
The land is located in Embassy Row, next to Menara HSC and is situated less than one kilometre from the Petronas twin Tower.
Kenanga Research, in a note to Bernama today, said the project, with a gross development value of RM1.04 billion, will feature an integrated commercial development.
"We maintained a 'market perform' call on SP Setia. Although there are catalytic projects at hands, it appears that SP Setia's liquidity issues are affecting its share price negatively," it said.
Hong Leong Investment Bank (HLIB) said the acquisition was not the best of time as other developers had been holding off their launches in the KLCC/Embassy area.
"SP Setia can also expect to have close to RM300 million sunk into the land, while having to wait at least two years before recouping any cashflow," the research house said in a note to Bernama.
Fortunately, SP Setia still has another RM760 million of gearing headroom before net gearing hit the 0.5 time threshold, it said.
HLIB has maintained its 'hold' call on SP Setia and unchanged target price at RM3.17. -- BERNAMA
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