[%jRfV%] 
Research by RHB
BUY – TP RM1.72

" Land Monetisation Driving Earnings; Maintain BUY”

SPSetia’s 1H24 earnings beat expectations, as its land monetisation strategy and equity stake sale in a project helped to offset an increase in one-off administrative expenses and wider losses related the Battersea Power Station JV. Its net gearing has also improved to 0.44x from 0.50x in FY23. Land sales amounting to MYR396m are expected to be recognised in 2H24, but, moving forward, earnings should be “more normalised” – driven mainly by its township developments and industrial expansion.

Analyst:
Loong Kok Wen, CFA
[%OdSS%]
Wan Muhammad Ammar Affan
[%FHGW%]

$KLSE-SPSETIA 
Research by RHB
BUY – TP RM1.72

" Land Monetisation Driving Earnings; Maintain BUY”

SPSetia’s 1H24 earnings beat expectations, as its land monetisation strategy and equity stake sale in a project helped to offset an increase in one-off administrative expenses and wider losses related the Battersea Power Station JV. Its net gearing has also improved to 0.44x from 0.50x in FY23. Land sales amounting to MYR396m are expected to be recognised in 2H24, but, moving forward, earnings should be “more normalised” – driven mainly by its township developments and industrial expansion.

Analyst:
Loong Kok Wen, CFA
loong.kok.wen@rhbgroup.com
Wan Muhammad Ammar Affan
ammaraffan@rhbgroup.com