TP: RM4.03, BUY

Promising start for FY13
SP Setia’s 2MFY13 sales grew 9.8% YoY to RM719m. The decent sales performance was led by new projects, i.e. Setia Eco Glades @ Cyberjaya and Setia Sky 88 in Johor and it reaffirmed our view that S P Setia’s property sales were unperturbed by negative sentiments arising from tighter lending guidelines and cooling measures. For this period, the number of units sold jumped 40%, which came mainly from 1) Trefoil SoVo (ASP: RM400k/unit) within the Setia Alam development and 2) new phases launched at its existing township development in Johor.

http://klse.i3investor.com/files/my/ptres/res13152.pdf

SP Setia sales up 30% to RM1.2bil in Q1 ended Jan 31, 2013

SP Setia Bhd recorded a 30.33% increase in sales to reach RM1.216bil for its first quarter ended Jan 31, 2013 from a year ago.

It said on Thursday the RM1.21bil accounts for 22.11% of its FY13 sales target of RM5.5bil.

It also said the Battersea Power station project in the UK had achieved a 95% take-up rate.

SP Setia expected the growth momentum from its 51 acres of land in Bangsar, 3.1 acres along Jalan Ampang where the Britsh High Commission is located, and 194.5 acres in Templer Park.

It has also completed the acquisition of 1,010 acres in Berarang, Ulu Langat.

SP Setia H1 earnings up 13.4% to RM188.6m

SP Setia Bhd's earnings rose 13.4% to RM188.68mil in the first half ended April 30, 2013 from RM166.38mil a year ago.

It said on Thursday its revenue rose 26.1% to RM1.398bil from RM1.108bil. Its profit before tax rose 7.7% to RM246.30mil from RM228.61mil a year ago.

In the second quarter ended April 30, its earnings rose 3.6% to RM95.77mil from RM92.38mil. Revenue increased by 15.2% to RM711.30mil from RM617.20mil.

Earnings per share were 4.02 sen compared with 4.85 sen. It proposed an interim dividend of four sen a share, comprising of 1.6 sen a share less income tax of 25% and 2.4 sen a share (single tier dividend).

SP Setia achieved total sales of RM4.37bil in the first seven months of its financial year ending Oct 31, 2013. This was a 104% increase compared to the same period of the previous financial year.

Interim Dividend of 1.6 sen per share less income tax of 25%

EX-date 26/08/2013
Entitlement date 28/08/2013
Payment date 18/09/2013


Interim Single-Tier Dividend of 2.4 sen per share

EX-date 26/08/2013
Entitlement date 28/08/2013
Payment date 20/09/2013

Aberdeen now SP Setia substantial shareholder

Aberdeen Asset Management PLC has emerged as a substantial shareholder in SP Setia Bhd with a 5.01% stake.

A filing with Bursa Malaysia showed Aberdeen had on Aug 12 acquired 383,600 SP Setia shares.

Aberdeen now holds 123 million shares in the company.

Mitsubishi UFJ Financial Group Inc’s unit, Mitsubishi UFJ Trust and Banking Corporation holds more than 15% stake in Aberdeen.

SP Setia records RM6.27b sales, exceeds target of RM5.5b

SP Setia recorded total sales of RM6.27b in the 10 months for its financial year ending Oct 31, 2013, which exceeded its target of RM5.5bil, as its international property sales gathered momentum.

It said on Wednesday the record-breaking sales this year reflected the property gropup’s success in both Malaysian and international markets.

“As at Aug 31, total international sales amounted to RM2.533bil of which RM1.247bil was contributed by the group’s 40% share of the sales achieved by the Battersea Power Station joint-venture project in Central London,” it said.

SP Setia said two other overseas projects – Fulton Lane in Melbourne and Eco Sanctuary in Singapore – contributed significantly to sales numbers.

It added Fulton Lane recorded RM409mil in sales during the year and Eco Sanctuary RM877mil.

SP Setia Bhd’s earnings were marginally higher at RM101.88mil in the third quarter ended July 31, 2013 from RM100.40mil a year ago. Its revenue rose 16.4% to RM761.50mil from RM654.19mil. Earnings per share were 4.14 sen compared with 5.21 sen.

For the first nine months, its earnings rose 8.9% to RM290.56mil from RM266.79mil a year ago. Its revenue rose at a stronger pace of 22.5% to RM2.16bil from RM1.76bil a year ago.

Elaborating on the overseas projects, SP Setia president & CEO Tan Sri Liew Kee Sin said SP Setia’s foray into the Australian market has borne well for the group.

“Fulton Lane’s success spurred us to look for a second venture in Melbourne and we recently previewed Parque Melbourne to overwhelming response,” he said.

As for Eco Sanctuary in Singapore, launched at the start of the year, saw most of units sold to Singaporean purchasers.

Liew said whilst the group is expanding overseas, its strong Malaysian base remained the main contributor to earnings.

Sales from the group’s Malaysian projects totalled RM3.737bil as at Aug 31, 2013 compared with RM3.55bil for the full FY2012.

+1

Malaysian group secures RM4b facility for Battersea project

S P Setia Berhad, Sime Darby Berhad and the Employees Provident Fund have secured a £790.2mil (RM4.08bil) facility for the massive Battersea Power Station (BPS) redevelopment in the UK.

The development and land refinancing facility was granted by a syndicate of five banks. They comprise of CIMB Bank Bhd, Oversea-Chinese Banking Corporation Ltd, Standard Chartered Bank, Maybank International and HSBC Bank.

According to an invitation letter on Thursday, the official signing ceremony for the refinancing facility will be held on Monday in Kuala Lumpur.

The consortium, comprising of SP Setia, Sime Darby and the EPF, will undertake a massive redevelopment of BPS.

An earlier report in July said the BPS project will be developed in eight phases, with the first phase comprising a block of 866 apartments that will be completed by 2015. So far, 97% of the apartments have been sold.

The Malaysian consortium that is undertaking this mammoth development, which has a gross development value of £8bil (RM38bil).