SP Setia is a world class developer born and bred in Malayisia with development projects in London, UK and Melbourne Australia. Has a sizeable landbank in Johore.
For property sector exposure in Johor,SP Setia Bhd has a sizeable land bank there (2,150 acres or 870.07 hectares), undemanding valuation , and de-gearing exercise via land sale.
Maybank IB said the property sector offers trading opportunities in the first half of 2024, with the thematics being the JSSEZ, Bayan Lepas Light Rail Transit (LRT) alignment, and potential revival of the HSR.
Our stock calls, however, are more fundamental-based. We have a 'buy' rating for S P Setia.
“Apart from its Johor exposure (2,150 acres or 15% of total gross development value), we like S P Setia for its cheap valuation (0.3 times P/BV versus the industry average of 0.6 times) and diversified product range.
MBB just upped STSetia's TP to 1.66 on 22 Mar. This is after confirmation of higher-priced landsale and potential REIT from mgnt. This could provide for higher upside come monday. Just my humble opinion😀
SP Setia intends to maximise the value of its investment assets by utilising REIT
Maybank Securities Research has increased its earnings predictions for FY24-26 by 1-55% and the target price to MYR1.66 (+38sen) based on a higher 0.5x FY24E Price-to-Book Value (PBV) ratio (previously 0.4x). This adjustment reflects the positive expectations for earnings and the financial position.
The research business views the proposed REIT as a way for SPSB to reduce debt and realise the value in its investment properties, enabling the company to keep a share in these assets and collect dividend earnings. The REIT might also help with future additions of SPSB’s mature assets, allowing for the recycling of funds.
These properties could consist of :
Shopping centre- Setia City Mall, Setia Eco Hill Mall, INC by KL Eco City, Setia Walk
Hotels - Amari Spice Hotel Penang & Amari Kuala Lumpur
Conference Centres. - Setia City Convention Centre, Setia Spice Convention Centre Penang.
SP Setia - An Emerging Industrial Player; Keep BUY
Potential REIT listing to lighten balance sheet. SP Setia is in the preliminary stage of listing some of its investment properties, and has identified a diverse list of potential assets in various sub-sectors such as Setia City Mall (retail), KL Eco City (office), and Tenby Setia Eco Park (Education). We think this would be a positive as it would lighten its balance sheet further.
Strong demand for Setia Alaman. SP Setia is in the midst of getting approvals to rezone Setia Alaman Industrial Park (GDV: MYR3.09b) for industrial use. The industrial park spans 399 acres, comprising of 35 plots of industrial land and six plots of commercial land. Some land parcels were recently transacted by logistics players at MYR140-160 psf, well exceeding management’s initial expectations. The attractive price is largely attributed to its strategic location and connectivity, linked to major highways like Jalan Meru and the North Klang Valley Expressway or NKVE. Other than the outright sale of industrial plots, SP Setia is also planning a JV for the co-development of certain plots.
This piece of land originally belongs to Petaling Garden, next to Klang Sentral, bounded by Setia Alam, and industrial park now developed by Sime Property. Easy access to WCE as well.
Kampong Champion slowly evolved into District Champion, then State Champion. May be National Champion, who knows?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
ks55
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Posted by ks55 > 1 month ago | Report Abuse
Kampong Champion turns aggressive already. When cross 1.20, become District Champion.....