KUALA LUMPUR: HwangDBS Vickers Research has maintained its "buy" call on S P Setia Bhd and increased the target price to RM7.90 from RM5.96.
In a research note on Thursday, Mar 3, HwangDBS said S P Setia was expected to increase its land bank with the coming RM1.1 billion placement and record RM1.8 billion unbilled sales.
"S P Setia has a knack of winning lucrative land deals, and is eyeing more high-density mixed development and townships in Klang Valley," it said.
It said S P Setia's gross development value was estimated at RM3 billion over six years commencing financial year 2012.
"This could boost its financial year 2013 earnings by 3% and revised net asset value by 2%," it said.
HwangDBS said the potential catalysts for the company would be robust sales, higher yield per acre and lucrative land sales. — Bernama