SP Setia has lower ESG concerns: Maybank IB

KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) is maintaining its earnings forecast and RM1.29 target price on SP Setia Bhd with a “Buy” call.

Maybank IB said SP Setia posed relatively lower social and corporate governance (ESG) concerns, despite being one of the leading developers in Malaysia with a remaining landbank of 8,653 acres worth RM137 billion in gross development value (GDV) spread across Malaysia, London, Singapore, Vietnam and Australia.

This is due to its continuous efforts in establishing policies to prevent and mitigate ESG risks.

“We maintain our earnings forecasts pending the release of fourth quarter (Q4) 2020 results,” the bank said, adding that SP Setia had planned to lower its debt level via the sale of completed inventories and non-strategic land bank.

“SP Setia is currently reviewing its capital structure to leverage on the current low interest rate environment.,” it said.

Maybank IB said SP Setia had integrated sustainability management into its culture, business activities and decision-making processes and continues strengthening the practices and existing sustainability governance framework.

“Environmental concerns are centric in all SP Setia’s property development projects.

“SP Setia’s continuous efforts in building sustainable developments have earned the company numerous awards,” it added.

Source: NST