SP Setia Shares Up on Strong Unbilled Sales, Overseas Contribution
SP Setia Bhd’s shares were higher following its strong unbilled sales of RM10.95 billion and projected overseas contribution beginning 2020, says AmInvestment Bank.
It said despite the lacklustre property market in Malaysia, the demand for landed residential properties in established townships remained steady.
“The company’s most recent launches, Setia Safiro Phase A1 and Setia Mayuri Phase 1, were sold out when they were launched in July 2019.
“Meanwhile, the Clarino double-storey terrace houses in Alam Impian which were launched in March achieved a strong take-up rate of 98 per cent within a month,” it said in a statement today.
AmInvestment, which maintained a “buy” call on SP Setia with a target price of RM2.39, noted that SP Setia planned to launch projects with a total gross development value of approximately RM6.8 billion in the 2019 financial year (FY19), mainly in the Klang Valley and Johor.
The company is maintaining its sales target of RM5.65 billion for FY19.
On SP Setia’s 40 per cent stake in the Battersea project, AmInvestment said the demand for the project’s residential units has been encouraging, with sales at 120 million British Pounds (1 British Pound = RM5.14) within the past 12 months.
At 11 am, shares of SP Setia rose two sen to RM2.03 with 114,100 shares transacted.
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