KUALA LUMPUR: PublicInvestment Bank Research says SP Setia Bhd's Q1 performance was within expectations, and expects subsequent quarters to be stronger.
The research house said on Friday that the property developer's weak performance in the first quarter was due to the festive season and lack of new launches in the first few months, as expected.
It said the group's revenue of RM908.5mil and net profit of RM123.4mil in 1QFY16 constituted only 20% of its full year estimates.
"There are no comparative numbers on-year and on-quarter given the recent change in year-end.
"We deem the results within expectations however, as we expect subsequent quarters to be stronger," it said in a note.
Public Invest Research said new sales recorded were RM696mil, or only 17% of the group's annual sales target of RM4bil.
"That said, the Group is looking to unveil projects worth RM4.8bil, of which RM3bil is under the Setia 10:90 scheme, while still maintaining its sales target of RM4bil," it added.
The research house maintained Outperform on the stock with a target price of RM3.85 and no change to its earnings estimates.