SP Setia (HOLD) - 1QFY12 net profit rose 20.9% yoy

SP Setia (HOLD)

• SP Setia’s 1QFY12 net profit rose 20.9% yoy, but declined 11.0% qoq to RM74.0m, making up only 17.5% and 20.7% of HLIB and consensus estimates respectively.  This was due to slower work progress in the festive period, and should strengthen from 2Q onwards.
• As of 29th February 2012, cumulative sales for four months stood at RM1.23bn, implying run-rate of  RM3.7bn.  We re-iterate our view that their RM4.0bn sales target for this year remains achievable
• Tan Sri Liew issued a joint statement with PNB to reassure the public that they will seek to restore the public shareholding spread back to 25%, but did not provide further details.
• Maintain HOLD and target price of RM3.95, which is the offer price.

Source: HLIB Research 23 March 2012