HLIB Research Recommends "Hold" Call On SP Setia

Last update: 15/03/2013KUALA LUMPUR, March 15 (Bernama) -- Hong Leong Investment Bank Research (HLIB Research) has recommended a "hold" call on SP Setia Bhd at a maintained RM3.02 target price.

HLIB Research said the property developer has a healthy earnings outlook, given its RM6.3 billion unbilled sales while its broad property landbank will help achieve the RM5.5 billion sales target this year.

" SP Setia is well on track to meet its sales target, having chalked up RM2 billion in the first quarter, of which 17 per cent sales contribution was from Eco Sanctuary in Singapore, while Fulton Lane contributed to nine per cent sales," HLIB Research said in a research note.

Meanwhile, Kenanga Research maintained its "market perform" call on the property developer, with an unchanged RM3.30 target price.

" SP Setia's RM93 million net profit for the first quarter was within expectation, making up 20 per cent of the street estimates for the 2013 financial year.

" The group's RM6.3 billion unbilled sales provides close to two years visibility," Kenanga said in a separate research note.