S P Setia to rebound on upcoming launches
Analysts who met with the company's management following the release of the 1Q25 results noted that, while views were mixed, upcoming quarters are expected to show improvement.
RHB Research, which maintained a 'buy' call on the stock with an unchanged target price of RM1.72 a share, said earnings missed expectations due to slower property launches and sales, resulting in a muted quarter.
The research house said the bulk of S P Setia's property launches are scheduled for the next two quarters.
Earnings are expected to improve from sales of industrial land in Setia Alaman in Selangor, the recognition of land sales in Taman Pelangi, Johor, and newly launched projects in Australia and Vietnam.
Meanwhile, MIDF Research kept a 'neutral' call on the stock and revised its target price to RM1.17 from RM1.21.
The research house said management remains committed to achieving a new sales target of RM4.8bil on the back of the planned launch of RM5.1bil worth of property developments and RM300mil in industrial properties.
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