PETALING JAYA: Analysts expect SP Setia Bhd’s first property launch in Vietnam and a slew of new high-end projects at home to lift the developer’s revenue to a record next year.
In a report yesterday, TA Securities said following management guidance, it had raised SP Setia’s revenue estimates to RM1.77bil from RM1.3bil for the year ending Oct 31, 2008 (FY08).
“Consequently, we have revised upward our net earnings projection by 17% for FY08 and 31% for FY09 to reflect its Vietnam contribution,” the research house said.
The joint venture with Becamex IDC Corp to develop EcoLakes in Vietnam had an estimated GDV of RM2.1bil and was scheduled to be launched in March, it said.
Locally, the company has unbilled sales of RM1.44bil, the highest ever. Its total sales of RM1.153bil for FY07 came within analysts’ expectations.
On Wednesday, group managing director Tan Sri Liew Kin Sin said the company would launch 10 projects next year to bring its total projects to 20, with a total gross development value (GDV) of RM30bil.
SJ Securities concurred that the Vietnam venture was the long-term catalyst for the group’s earnings.
It said SP Setia had unveiled a five-year plan to double its profit by 2012 from next year by focusing on the expansion in its three residential brands: Setia, Eco and Duta. It would also launch its first high-end condominium project in Kuala Lumpur - Setia Sky Residences in Jalan Tun Razak and ultra luxury homes under Duta Grande brand.
The plan also involved undertaking commercial projects with shop offices within townships and integrated commercial development, SJ Securities said.
SJ Securities is maintaining an “overweight” call on the counter.
TA Securities has a “sell” call on the stock with a target price of RM7.70, which would offer a return of 9.1%.
The counter closed at RM7.40 yesterday, down 30 sen, on volume of 8.39 million shares.
By The Star (by
Posts
No comments:
Post a Comment