[%trEx%] 
Research by Maybank
HOLD – TP RM1.64

" Earnings could have been better”

SPSB’s 2Q24 core net profit of MYR308m (+4.1x YoY, +3.2x QoQ) came in below our expectation but above consensus. 6M24 property sales of MYR2.3b (incl. land sales) is on track to meet its internal target of MYR4.4b (-14% YoY) for FY24 but is also below our assumption. Net gearing improved to 0.41x (0.45x in end-1Q24) post-land sale. We cut earnings forecasts by 20%-28% and TP to MYR1.64 (-2sen) on unchanged 0.5x FY25E PBV. D/G to HOLD (from BUY) given limited upside potential of <10%.

Analyst:
Wong Wei Sum, CFA
[%bQBs%]

$KLSE-SPSETIA 
Research by Maybank
HOLD – TP RM1.64

" Earnings could have been better”

SPSB’s 2Q24 core net profit of MYR308m (+4.1x YoY, +3.2x QoQ) came in below our expectation but above consensus. 6M24 property sales of MYR2.3b (incl. land sales) is on track to meet its internal target of MYR4.4b (-14% YoY) for FY24 but is also below our assumption. Net gearing improved to 0.41x (0.45x in end-1Q24) post-land sale. We cut earnings forecasts by 20%-28% and TP to MYR1.64 (-2sen) on unchanged 0.5x FY25E PBV. D/G to HOLD (from BUY) given limited upside potential of <10%.

Analyst:
Wong Wei Sum, CFA
weisum@maybank-ib.com