Being part of the "dragon". We are neutral on SPSB's latest JV in China. Whilst the backing by both governments will lower the overall project risk, we remain concerned on the challenging Chinese property market. We maintain our earnings forecasts and RM3.93TP. The latest development reaffirms our view that SPSB is likely to benefit from future government land developments/projects, backed by its proven track record, sound management and government-linked status. Hold.
Maybank Research - 3 April 2012
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