SP Setia’s (SPSB) 1QFY26 headline net profit came in at RM31.1m (-53.6% YoY, -88.7% QoQ), which was below analysts and consensus estimates.
“Stripping out one-off items, Group net profit of RM51m in the first quarter constituted about 12.4% and 10.7% of our and consensus full year estimates,” says analysts.
Granted, the first quarter traditionally is the weakest quarter for the Group due to festive seasons but the results were still below expectations due to lack of contributions of land sale, slower billings and lower margins achieved during the quarter.
SP Setia
“That said, we keep our earnings estimates for now, as we believe subsequent quarters should be stronger.
“Separately, the Group secured pre-sales of RM555m, comprising RM500m (90%) from domestic development and RM55m (10%) from international development in 1QFY26 or about 12.1% of its FY26F sales target of RM4.6bn,” says PIB.
Analysts also says with pipeline launches totalling RM5.36bn across 50 projects, they expect the Group to ramp up launches in 2H2026.
Unbilled sales now stand at RM4.2bn (from RM4.5bn in 4QFY25).
“All told, we maintain our Neutral call and TP of RM0.93, ascribing a c.65% discount to book value (in line with its five-year average discount to book value).”
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