News by CIMB Research

Financial year 2019 (FY19) core net profit stood at RM189 million versus a net loss of RM4 million in FY18

Post-Budget 2020, we generally expect sector job award growth to come off a low base, driven mainly by the ECRL.

S P Setia secured about RM1.9 billion new property sales (excluding land sales of RM87 million) in 1HFY19 versus RM2.1 billion in 1HFY18, with the majority of new sales coming from the central region (about 60%) of Malaysia.

The land, 14km from Kuala Lumpur City Centre, has a wide catchment from established neighbourhoods of Kepong, Taman Selayang Jaya and Batu Caves. The land is also within walking distance from the Kepong Metropolitan Park, and near public transportation — it is 3.3km from the upcoming Metro Prima mass rapid transit 2 station, and 4km from the Taman Wahyu KTM station.

Based on our industry checks, we have estimated that the total value of ECRL civil works to be between RM22 billion and RM26 billion, being 50-60% of total project cost of RM44 billion.

Cement players which have been served a notice under Section 21 of the Price Control and Anti-Profiteering Act 2011, have agreed to suspend the price hike.

We do not see much room for housing loan growth given the existing low interest rate environment, limited buyer’s affordability and possible interest rate hike.

CGSCIMB Research: Maintain reduce with a lower target price (TP) of RM2.12

CGSCIMB Research: Maintain hold with an unchanged target price of RM7.83

CGSCIMB Research: We maintain our “hold” recommendation and roll over our valuations to end-2019.