KLCI Stock - SPSETIA / 8664 - 2010 Quarter 1

OSK Target Price: 3.59
My Target Price: 4.48+0.14=4.62 (PE 26, EPS 0.1724, DPS 0.14)
My decison: NOT BUY (unless price <=3.8)
Reason: Overvalue, low ROE

My study based on 2010 Quarter 1 report (number in '000):-
- The Group’s profit and revenue were mainly derived from its property development activities carried out in the Klang Valley, Johor Bahru and Penang. Ongoing projects which contributed to the Group’s profit and revenue include Setia Alam and Setia Eco-Park at Shah Alam, Setia Walk at Pusat Bandar Puchong, Setia Sky Residences at Jalan Tun Razak, Bukit Indah, Setia Indah, Setia
Tropika and Setia Eco Gardens in Johor Bahru and Setia Pearl Island in Penang. Apart from property development, the Group’s construction and wood-based manufacturing activities also contributed to the earnings achieved
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1724 (3% increase from 0.1674), estimate PE on current price 4.18 = 23.43(DPS 0.14)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.16, estimate highest/lowest PE = 26.25/21.5 (DPS 0.14)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.16, estimate highest/lowest PE = 27.63/21 (DPS 0.15)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.16, estimate highest/lowest PE = 28.56/22.81 (DPS 0.15)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.16, estimate highest/lowest PE = 28.69/16.19 (DPS 0.17)

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