KUALA LUMPUR (April 3): MIDF Research has raised it target price for S P Setia Bhd to RM4.21 from RM3.95 previously and maintained its Neutral call on the stock and said the company was benefitting from a closer tie between the China and Malaysian governments.
S P Setia and Rimbunan Hijau Group had via Qinzhou Development Consortium S/B entered into a joint venture agreement with Qinzhou Jingu Investment Co, Ltd (Qinzhou Jingu) to develop, construct and operate the China-Malaysia Qinzhou Industrial Park (QIP) on a parcel of land measuring approximately 55 sq km (13,590.5 acres).
MIDF Research in a note April 3 said the outlook for China’s property market remains uncertain as the property price has escalated to unsustainable level due to excessive speculative activities.
“Nonetheless, we are positive on the involvement of SP Setia as QIP is a government to government project.
“Moreover, the China government had implemented several measures to counter the property speculation issue. The JV project will diversify SP Setia’s land bank which is predominantly located in Malaysia,” it said.
S P Setia and Rimbunan Hijau Group had via Qinzhou Development Consortium S/B entered into a joint venture agreement with Qinzhou Jingu Investment Co, Ltd (Qinzhou Jingu) to develop, construct and operate the China-Malaysia Qinzhou Industrial Park (QIP) on a parcel of land measuring approximately 55 sq km (13,590.5 acres).
MIDF Research in a note April 3 said the outlook for China’s property market remains uncertain as the property price has escalated to unsustainable level due to excessive speculative activities.
“Nonetheless, we are positive on the involvement of SP Setia as QIP is a government to government project.
“Moreover, the China government had implemented several measures to counter the property speculation issue. The JV project will diversify SP Setia’s land bank which is predominantly located in Malaysia,” it said.
