[%OmVt%] 
Research by Kenanga
UNDERPERFORM – TP RM0.90

" Battersea Even Deeper in Red”

SPSETIA’s 1HFY24 earnings beat our forecast due to heavy land bank disposals which are expected to persist up till 2HFY24. This led us to raise our FY24F earnings by 144%. However, consensus estimate also missed as losses from Battersea have widened with certain profit guarantee clauses being triggered upon handover, keeping us less optimistic for SPSETIA. Maintain our anti- consensus UNDERPERFORM but with a higher TP of RM0.90 (from RM0.85) on updates to our book assumptions.

Analyst:
Clement Chua 
[%rKRV%]

$KLSE-SPSETIA 
Research by Kenanga
UNDERPERFORM – TP RM0.90

" Battersea Even Deeper in Red”

SPSETIA’s 1HFY24 earnings beat our forecast due to heavy land bank disposals which are expected to persist up till 2HFY24. This led us to raise our FY24F earnings by 144%. However, consensus estimate also missed as losses from Battersea have widened with certain profit guarantee clauses being triggered upon handover, keeping us less optimistic for SPSETIA. Maintain our anti- consensus UNDERPERFORM but with a higher TP of RM0.90 (from RM0.85) on updates to our book assumptions.

Analyst:
Clement Chua 
clement.chua@kenanga.com.my