KUALA LUMPUR, Jan 14 – HwangDBS Vickers Research is maintaining a ‘buy’ rating on SP Setia Bhd with a target price of RM4.10, following the launch of phase one of the Battersea Power Station mixed development in London.
The £8 billion (RM39 billion) redevelopment project is owned by the Malaysian consortium comprising the Employees Provident Fund, Sime Darby Bhd and SP Setia Bhd.
In a note today, the research house said the rating was based on a 25 per cent discount to Revalued Net Asset Value (RNVA) of RM5.41.
The mixed development was launched in London on Friday and the London Evening Standard reported about 50 buyers queuing in the morning before the launch, with all 200 units allocated snapped up.
HwangDBS Vickers Research said the 800 apartment units in phase one at £1,000 (RM4,875) per square feet was almost fully booked, with Malaysia allocated 400 units and London 200 units, with Singapore and Hong Kong having 100 units each.
Phase One with a gross development value of £900 million(RM4,387 million) comprises offices, shops, leisure and hospitality units.
“Construction is targeted to commence in the second half this year,” HwangDBS Vickers Research said.
As at 12.11pm, the SP Setia stock rose two sen to RM3.14, with 610,400 shares traded.
The research house said SP Setia is off to a good start, adding, there could be a potential upside.
Company president and chief executive officer Tan Sri Datuk Seri Liew Kee Sin was quoted as saying that the redevelopment could be accelerated to be completed in eight years and earlier than planed. – Bernama