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SP Setia - Another Spectacular Take-Up
Author: kltrader | Publish date: Wed, 16 Oct 08:58
Maintain HOLD. SPSB’s Eco Hill recent launch in Semenyih (Selangor) appears to be a spectacular success. All 760 landed property units launched last Saturday were fully booked. We are not surprised by the strong demand; with a new living environment concept in Semenyih and strategic location (a flyover connects it to the Lekas Highway), it is a replica of the popular Setia Alam-Setia Eco Park project. We retain our forecasts, which incorporate this project, and MYR3.50 TP (0.7x P/RNAV).
Overwhelming response. All 760 landed properties (terraces, semi-D and bungalows priced at MYR400,000-2m/unit) launched last Saturday were fully booked within a day. About 4,000-5,000 registrants queued for the limited queue numbers distributed on Friday (11 October) for entitlement to unit selection on Saturday (12 October), we were told. Most buyers were local upgraders from Semenyih, Kajang and Cheras.
The pull factors. We are not surprised by the overwhelming response to Eco Hill given SPSB’s strong branding. More importantly, Eco Hill is a replica of SPSB’s popular Setia Alam-Setia Eco Park project, which boosted buyers’ confidence. To enhance the marketability of Eco Hill, show units were built before the official launch. A flyover is being built to connect the project to the Lekas Highway, we understand.
A record year. Sales of these landed units will only be recognised in FY10/14, we believe, as the conversion of bookings into sales takes time. FY10/13 has been a spectacular year for SPSB; it has thus far raked in sales of MYR6.3b in just 10 months (FY10/12: MYR4.2b), surpassing its FY10/13 sales target of MYR5.5b. Unbilled sales stood at MYR7.8b in July 2013 or 1.8x our FY10/14 revenue forecast, providing medium-term earnings visibility.
Forecasts unchanged. We maintain our estimates, which incorporate MYR7b in sales for FY10/14, including from Eco Hill. We value SPSB at 0.7x P/RNAV (-0.1x from historical mean); the discount reflects our concern over its ability to retain key management figures. SPSB (+8.6% YTD) has underperformed the KL Property Index (+26% YTD).
Source: Maybank Research - 16 Oct 2013
Harga rumah teres di Semenyih telah mencecah harga RM400,000…. memang tak mampulah daku untuk membelinya …..