March 12, 2015
December 18, 2014
Research houses positive on SP Setia
Company Name: SP SETIA BHD
| Research House: ALLIANCE | Price Call: BUY | Target Price: 4.10 |
ALLIANCE DBS Research is maintaining a "buy" rating on SP Setia Bhd, with a target price of RM4.10, following its commendable fourth quarter results.
SP Setia reported fourth quarter earnings of RM131 million, a 27 per cent increase quarter-on-quarter and a three per cent rise year-on-year, taking its 2014 financial year earnings to RM406 million.
"The higher-than-anticipated 4QFY14 earnings were largely due to the strong turnaround of its construction division as well as higher profit recognition from completed projects," said the research house.
SP Setia achieved RM4.6 billion in property sales in FY14, with RM1.2 billion from its Battersea Power Station project and RM2.1 billion from Malaysian projects, it said.
Affin Hwang Research has maintained its "reduce" call on SP Setia, with a lower target price of RM2.78.
"We have lowered our FY15-FY16 estimation earnings forecasts by 6.1 per cent and 2.3 per cent, respectively, after updating FY10/14 figures and assuming a higher associate loss.
"Although we like SP Setia for its strategic landbank and high unbilled sales of RM11 billion, we opine that the persistent uncertainty over the group's strategic direction and leadership transition will lead to further exodus of talent," it said.
Hong Leong Investment Bank Research has kept its "hold" call on SP Setia, with target price unchanged at RM3.45, believing the property market will remain weak next year. Bernama
December 17, 2014
June 12, 2014
March 21, 2014
January 22, 2014
'Hold' call placed on SP Setia shares
Company Name: SP SETIA BHD
| Research House: MAYBANK | Price Call: HOLD | Target Price: 3.38 |
KUALA LUMPUR: Maybank IB Research placed a 'hold' recommedation on SP Setia Bhd shares with its RM3.38 target price now under review given the earlier-than-expected departure of its three senior executives.
Co-founder President and Chief Executive Officer (CEO) Tan Sri Liew Kee Sin, Chief Financial officer (CFO) Datuk Teow Leong Seng and non-independent non-executive director Tan Sri Lee Lam Thye tendered their resignations on January 21, but current Chief Operating Officer (COO), Datuk Voon Tin Yow will assume the role of acting CEO for one year from May 1 to Apr 30 next year.
The departure of Liew and the senior executives came in earlier than expected and it is believed Liew would leave by March this year as he exercise of the last tranche of his put option ahead of the March 2015 timeline, Maybank IB noted.
Liew was given a put option which gives him the right to sell his eight per cent stake in SP Setia to Permodalan Nasional Bhd (PNB) progressively at MYR3.95 per share pricing in seven tranches between February 2012 and March 2015.
Over the next year, the Board of SP Setia will actively seek the views of its major shareholder, PNB, before the formal terms and conditions of appointment are agreed and finalised with the identified successors.
This is despite an existing management succession plan that is in place whereby Voon is supposed to replace Liew as president and CEO upon his resignation.
According to the research house, the upside of the share price may be capped in near term due to attractive valuations on execution/staff retention risks, but noted that re-rating is possible in event of a clear strategy and potential asset injections from PNB.
Meanwhile, Liew have agreed to stay on as the Chairman of the Battersea Project Holding Co Ltd and Managing Director of Qinzhou Development (M) consortium Sdn Bhd. Teow will remain Chairman of Battersea Power Station Development Co Ltd until September next year to ensure the smooth and successful implementation of these international projects.
SP Setia's share price has declined 4 per cent year-to-date, despite record unbilled sales of MYR9.6 billion (2.5 times of FY10/14 revenue forecast) as at end FY10/13.
"While we think a large portion of the management risk is already factored into its share price, the upside may be capped in the near term by execution risk and the risk of more senior staff departures. We understand that about 15 per cent of the 1,600-1,700 staff has left the company since 2013. We value SP Setia at 0.7 times price revalued net asset value negative 0.1 times below its historical average of 0.8 times."
Maybank IB said valuations are undemanding at 13.4 times compared to its historical means of 15.8 times price-earnings ratio, 1.6 times price over book value and 0.8 times price over revalued net asset value.
December 13, 2013
September 26, 2013
June 28, 2013
June 14, 2013
Affin raises SP Setia to 'trading buy'
Company Name: SP SETIA BHD
| Research House: AFFIN | Price Call: BUY | Target Price: 4.14 |
Affin Investment Bank upgraded SP Setia Bhd to 'trading buy' from 'add', citing higher annual property sales going forward in view of the company's strong year-to-date sales and improved property market sentiment post election.
The research house also raised its target price on the shares of the company to RM4.14 from RM3.35.
"We view SP Setia as an attractive laggard play," the research house said in a note on Friday.
"Its share price has grossly underperformed peers despite its commendable, record year to date property sales."
Moving forward, Affin said it believes investors will shift their focus from the likely retirement of SP Setia's chief executive Liew Kee Sin to the company's strong fundamentals.
Shares of the company rose 0.3 per cent to RM3.39, underpeforming the KL property benchmark index's 1.28 per cent rise.-- Reuters
May 10, 2013
March 15, 2013
February 7, 2013
January 17, 2013
December 13, 2012
SP Setia dips despite good financial results
Company Name: SP SETIA BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 4.10 |
KUALA LUMPUR: SP Setia Bhd's shares on Bursa Malaysia dipped four sen, or 1.27 per cent, to RM3.11 as at 3.39 pm today despite posting good financial-year result yesterday.
The counter opened at RM3.17 and hovered between RM3.11 and RM3.18 with 3.68 million shares traded.
HwangDBS Vickers Research said the 30 per cent growth target in sales for next financial year was achievable due to the launch of Battersea Phase 1 condominiums, RM4 billion Setia Eco Hills@Semenyih township and other projects.
"We see the RM40 billion gross development value for Battersea as a gamechanger which can potentially double earnings by financial years 2016 and 2017," it said in a note to Bernama.
The research firm has maintained a 'buy' call on SP Setia and with the target price at RM4.10 -- BERNAMA