KUALA LUMPUR: PublicInvest Research has issued an “outperform” call on SP Setia Bhd, with a target price of RM4.15, based on its expectation of stronger quarters ahead for the company.
In its Results Review report, the research house said that SP Setia's 1QFY2017 net profit of RM105 million was largely within PublicInvest Research's expectations.
"Sales are typically slower in the first quarter due to the Chinese New Year holidays. Encouragingly, sales appear to be better in April," the firm wrote.
The bulk of SP Setia's local sales were mainly driven by projects in the central region.
"Key launches will still be mostly located in the central region, and include mid-priced landed properties and affordable housing in which demand has proven to be resilient," the firm said.
Major central region projects in the pipeline are new phases of Setia Alam, Setia EcoHill, Setia Eco Park, Setia Sky Seputeh, Setia Eco City and Setia Seraya Residences.