Monday, January 17, 2011

SP Setia advances in nearly trade

KUALA LUMPUR: Shares of SP Setia advanced in early trade on Monday, Jan 17, to RM6.89 on the strong positive outlook for the property developer.

At 9.13am, it was up 19 sen to RM6.89 83,100 shares done.

The FBM KLCI rose 4.15 to 1,574.04. Turnover was 177.24 million shares done valued at RM124.30 million. Advancers beat decliners nearly five to to one with 250 gainers to 55 losers and 161 stocks unchanged.

RHB Research Institute is maintaining an Outperform on SP Setia, with an unchanged fair value of RM8.05, based on 30x CY11 earnings.

The research house said with more news flow on SP Setia's landbanking efforts (plus the recent successful bid for the Penang International Convention Centre project), the company has shown its strength and reputation for successfully bidding for land deals (from the Government), which hence differentiates itself from the other developers.

RHB Research said this explains the large valuation premium against its peers.


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