SP Setia – Performed as usual

SP Setia – Performed as usual                                                                              Market Perform

Results Note

-          1QFY12 net profit came in within our estimate but below market expectation. Lower qoq turnover growth was due to slower construction progress, while the improvement in PBT margin, driven by higher selling prices, mitigated the decline in earnings.

-          New sales amounted to RM1.23bn from Nov 2011 to Feb 2012. Taking into account the slew of projects in the pipeline, the company should be able to achieve its sales target of RM4bn.

-          Maintain Market Perform. Fair value is kept at RM3.95, based on 10% discount to RNAV.

Source: RHB Research 23 March 2012