Wednesday, May 16, 2012

S P Setia: Maintain Hold - Expanding Its Presence In Penang

Maintain HOLD. We are neutral on SPSB's latest land acquisition on Penang island. Despite its strategic location, the MYR200psf land cost appears on the high side. We expect development on the new land to only contribute from FY10/15 onwards, hence there is no change to our 3-year earnings forecasts. Target price is raised by 7sen to MYR4.00 based on unchanged 10% discount to new MYR4.44 RNAV (+7sen).

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 Source: Maybank Research - 16 May 2012

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