In a research note today, the investment bank said SP Setia has been carefully launching new units and so far, only new phases at existing township projects have been launched.

“Elsewhere, the property developer is reviewing its capital structure to leverage the current low interest rate environment.

“It is also looking to dispose of 524.07 hectares of non-core landbank worth RM2 billion in market value,” it said.

The investment bank said SP Setia also intends to resume its dividend payment and reward its ordinary shareholders this year once the Battersea Power Station (BPS) Phases 2 and 3A are completed, adding that the property developer does not urgently require immediate funds for future developments at the BPS project.

“BPS Phase 2’s expected completion is between March and August 2021 and completion of Phase 3A is between November 2021 and March 2022,” it said.

It added that SP Setia halted dividend payment in FY20 after reporting a net loss of RM321 million, mainly due to impairment.

The investment bank has maintained “buy” call on SP Setia, with an unchanged target price of RM1.39 per share.

At 11.47 am, SP Setia’s share price stood at RM1.12.