SP Setia

[winston]

Not vested

SP Setia [SPSB MK] - Neutral : 2Q11 results in line, similar performance to 1Q11 ( RM4.1 / PT: RM4.67 ) by Jacinda Loh; Raashi Gupta

Headline NPAT appeared considerably above our numbers; however, upon normalization of a c.RM30mn gain on disposal, 2Q11 net profit was RM62mn.

1H11 met 50% of our full-year estimates, and was slightly below consensus (45%).

7M sales of RM1.66bn imply an annual run rate of RM2.8bn, with upcoming new projects like KLEC and Fulton Lane to round up to its RM3bn target.


Source: Nomura

[winston]

not vested

STOCKS NEWS MALAYSIA-MIDF raises SP Setia's target price

MIDF raised its target price on property developer SP Setia Bhd to 3.96 ringgit per share from 3.86 ringgit, on the back of better-than-expected earnings and the firm's strong unbilled sales worth 4.4 billion ringgit.

SP Setia secured 4.23 billion ringgit of property sales in 2012, beating its full-year sales target by 6 percent, while its earnings growth climbed 20 percent on year, the research house said in a note on Thursday.

MIDF added that SP Setia's land acquisitions of Battersea and Qinzhou China Industrial Park allows for "sizable projects with long life spans".

"We believe SP Setia will benefit from their international projects in the United Kingdom, Singapore and Australia. The diversification will mitigate the cyclicality in the property sector," MIDF said.

In July, SP Setia led a consortium with Sime Darby Bhd to buy London's iconic Battersea power station for 400 million pounds ($644.66 million), with plans to redevelop the site into homes, offices and shops.

MIDF raised the earnings forecast on SP Setia for the financial year of 2014 by 13 percent, but kept its 'buy' call on the stock.

Additionally, the research house said SP Setia's recent removal from the Morgan Stanley Capital International (MSCI) Malaysian index triggered a tumble in share prices, but the firm's record-breaking sales and strategic plans affirms its "solid fundamentals".

As of 0357, shares in SP Setia edged down 0.95 percent against the Malaysian benchmark stock index's <.KLSE> 0.12 percent rise.

Source: Reuters

[winston]

not vested

S P Setia Q2 profit up 12.1% to RM118.39mil

KUALA LUMPUR: S P Setia Bhd posted profit of RM118.39mil in the second quarter ended April 30, 2014, up 12.1% from RM105.58mil a year ago, underpinned by its ongoing projects.

The property company, which recorded total sales of RM3.2bil in the first seven months up to May 31, said on Wednesday its pre-tax profit and revenue also improved from a year ago.

S P Setia's profit before tax rose 13.9% to RM165.37mil from RM145.13mil while revenue increased by 26.3% to RM952.35mil from RM753.72mil.

Earnings per share were 3.02 sen compared with 3.95 sen. It declared an interim dividend of 4.0 sen a share.

Ongoing projects which contributed to the profit and revenue achieved include Setia Alam and Setia Eco-Park in Shah Alam, Setia Ecohill in Semenyih, Setia Eco Glades in Cyberjaya, Setia Sky Residences at Jalan Tun Razak, KL Eco City at Jalan Bangsar, Setia Walk in Puchong, Aeropod in Kota Kinabalu.

Other projects included Bukit Indah, Setia Indah, Setia Tropika, Setia Eco Cascadia, Setia Business Park II, Setia Eco Gardens and Setia Sky 88 in Johor Bahru, Setia Pearl Island, Setia Vista, Setia Greens, Setia V Residences and Brook Residences in Penang and 18 Woodsville and Eco Sanctuary in Singapore.

In the first half, its earnings were up 11.3% to RM235.38mil from RM211.32mil in the previous corresponding period.

Profit before tax rose to RM312.53mil from RM280.86mil. Its revenue increased by 12.4% to RM1.674bil from RM1.488bil.

Acting president & CEO Datuk Voon Tin Yow said the group "is on track to achieve its RM5bil sales target set for FY2014 despite the challenging conditions facing the property industry currently".

"The group's prospects remains positive going forward as we have unbilled sales of RM11.2bil that will contribute to earnings over the next few years."

Voon said the various cooling off measures implemented by Bank Negara Malaysia hasdresulted in a moderation of sales for the group in the current quarter as compared to previous quarters.

"Property buyers are also adopting a more cautious approach in buying or investing with speculation rife on possible interest rate hikes in the second half of 2014.

"However, the group is confident that our strong brand name, good product mix and solid cash flow position will enable it to ride out the challenging times," he said.

Source: The Star

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SP Setia shares up, PNB may inject assets

KUALA LUMPUR: Shares of SP Setia Bhd rose to a high of RM3.44 on Thursday, as investors sentiment perked up on speculation its major shareholder Permodalan Nasional Bhd (PNB) could inject its unlisted assets into the company.

At 3.32pm, SP Setia was up eight sen to RM3.39. Turnover was 4.49 million shares at prices ranging from RM3.25 to RM3.34.

The FBM KLCI was up 2.59 points to 1,889.43. Turnover was 1.32 billion shares valued at RM1.45bil. There were 384 gainers, 399 losers and 319 counters unchanged.

Maybank Investment Research said news about a potential injection of PNB's unlisted property companies held under the I&P Group Sdn Bhd into SP Setia has resurfaced, saw its share price climb 8% to RM3.31 within two days.

"Apart from the potential M&A, we suspect the buying momentum in SP Setia was also due to foreign buying.

"Foreigners have remained as net buyers of Malaysian equities since April 2014 although the quantum has tapered off in June 2014," it said.

Maybank Research said PNB privatised three listed property companies i.e. Petaling Garden, Pelangi and I&P between 2005-2007 and rationalised its holding in these three companies via a holding company structure under I&P Group in 2009.

It added according to the media, I&P Group's assets could be worth RM10bil.

I&P Group's filed audited accounts for the financial year ended Dec 31, 2012 showed RM4.41bil in total assets of which RM2.97bil were land and property related.

"M&A involving the unlisted I&P Group and SP Setia, if it materialises, would not be a surprise to us. To us, the merger is just a matter of time as we already view SP Setia as PNB's key property arm.

"Since SPSB has a more established customer base and operating system as well as a stronger brandname, the injection should unlock the maximum potential of PNB's landbank.

"Our study on I&P Group reveals that it has large tracts of land in Johor, Klang Valley and Negeri Sembilan. Information remains sketchy for now," it said.

Source: The Star

[winston]

not vested

S P Setia’s unbilled sales as of June 30, stood at RM8.2bil, with net gearing ratio of about 24%.

For the financial quarter ended June 30, the group’s revenue was derived from construction of an exhibition centre in Penang, a complex in Setia Alam and a commuter station at KL Eco City.

Source: The Star

[winston]

not vested

S P Setia registers lower 2QFY2023 earnings on higher finance costs, forex losses

By Chester Tay

S P Setia Bhd’s net profit declined 46% for the second quarter ended June 30, 2023 (2QFY2023) as increased finance costs and foreign exhange losses offset the group’s higher gross profit.

Earnings fell to RM43.06 million or 1.06 sen per share in 2QFY2023, from RM80.09 million or 1.97 sen per share a year ago, as finance costs rose 57% to RM94.1 million from RM60.01 million over the same period.

During the quarter under review, S P Setia also booked an unrealised foreign exchange loss of RM17.53 million versus a forex gain of RM8.12 million a year ago.

S P Setia currently has 44 ongoing projects and unbilled sales totalling RM6.82 billion as at June 30, 2023, giving it earnings visibility in the short to mid-term.

S P Setia has an effective remaining land bank of 6,870 acres with a total gross development value of RM125.77 billion as at June 30, 2023.

In June and July 2023, S P Setia announced the disposals of 500 acres of land in Selangor for a consideration of RM392 million, and another eight parcels of land measuring 959.7 acres in Tebrau, Johor for a consideration of RM548 million.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/678897

[winston]

SP Setia (SPSB MK)
Valuation at half the industry average

Profit below but sales above expectation

SPSB’s 2Q23 core net profit of MYR60m (-16% YoY, +20% QoQ) was below expectations while 6M23 property sales of MYR2.6b were above.

We adjust our FY23-25 earnings forecasts by -61% to +41%.

We raise our TP to MYR1.20 on 0.4x FY24E PBV (historical mean; from 0.2x) where the higher
PBV is justified by SPSB’s stronger balance sheet (<0.5x net gearing in FY24E) post-land sales.

SPSB’s has 2,063 acres of undeveloped landbank in Iskandar M’sia. BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/334864.pdf