S P Setia Bhd

S P Setia Bhd maintains a debt-to-equity ratio of 0.64, indicating a relatively balanced capital structure with moderate leverage. The company's liquidity is assessed as medium, with a current ratio of 1.75, suggesting it can cover its short-term obligations but with limited excess capacity. Free cash flow for the period was MYR 204.66 million, which is lower than operating cash flow of MYR 1.999 billion, indicating some capital expenditure activity.

Profitability metrics show a return on equity (ROE) of 2.00% and a return on assets (ROA) of 1.03%, both below the industry median for real estate developers. This suggests that the company is underperforming in terms of asset utilization and equity returns compared to its peers. Gross profit of MYR 657.97 million and operating income of MYR 587.38 million reflect a healthy margin, but the net income of MYR 295.03 million indicates some pressure from operating expenses and interest costs.

The company's revenue is concentrated in Malaysia, with no disclosed international operations. This geographic concentration increases exposure to local economic and regulatory risks. The company operates in a single business segment, which limits diversification and exposes it to sector-specific volatility.

Looking ahead, the company is expected to maintain a stable revenue trajectory, with no significant growth or contraction projected in the next fiscal year. Capital expenditure for the period was MYR 42.57 million, indicating a modest investment in new projects or infrastructure. The company's risk assessment highlights liquidity as a medium concern, with net cash being negative after subtracting total debt, which could limit flexibility in capital allocation.

Recent filings and transcripts do not indicate any material changes in the company's strategic direction or financial outlook. Analysts have provided a mean price target of MYR 1.19, with a median of MYR 1.19 and a range from MYR 0.93 to MYR 1.62. The mean recommendation is 2.25, indicating a generally positive outlook, with 2 strong-buy, 5 buy, and 5 hold ratings.

The company's risk profile includes a low dilution potential, with no significant dilutive events expected in the near term. The risk assessment does not highlight any imminent equity issuance or share buyback plans that would materially affect ownership structure.

Analysts project 21.7% upside to a mean price target of 1.19, reflecting positive market sentiment.

Debt-to-equity ratio of 0.64 is below the 0.52 cohort median, suggesting a conservative leverage profile.

Return on equity of 2.0% slightly exceeds the 1.94% cohort median, indicating adequate capital efficiency.

The company faces high credit risk, posing potential challenges for debt servicing and financial stability.

Net income fell 11.5% year-over-year to 510 million MYR, reflecting weakening profitability trends.

Medium liquidity risk flags potential difficulties in meeting short-term financial obligations promptly.

Revenue MYR 4.22B, −20,3% YoY; Operating income −13,4% YoY.

• ▍Revenue MYR 4.22B, −20,3% YoY
• ▍Operating income −13,4% YoY
• ▍Net income −11,5% YoY
• ▍Free cash flow −105,3% YoY
• ▍Net margin 12.1%

Revenue MYR 5.29B, +21,0% YoY; Operating income +55,3% YoY.

• ▍Revenue MYR 5.29B, +21,0% YoY
• ▍Operating income +55,3% YoY
• ▍Net income +92,9% YoY
• ▍Free cash flow +941,5% YoY
• ▍Net margin 10.9%

Revenue MYR 4.37B, −1,8% YoY; Operating income +25,1% YoY.

• ▍Revenue MYR 4.37B, −1,8% YoY
• ▍Operating income +25,1% YoY
• ▍Net income −1,9% YoY
• ▍Free cash flow +161,6% YoY
• ▍Net margin 6.8%

Revenue MYR 4.45B, +18,4% YoY; Operating income +16,4% YoY.

• ▍Revenue MYR 4.45B, +18,4% YoY
• ▍Operating income +16,4% YoY
• ▍Net income +7,0% YoY
• ▍Free cash flow −131,4% YoY
• ▍Net margin 6.8%

Revenue MYR 3.76B; Operating income MYR 722.1M.

• ▍Revenue MYR 3.76B
• ▍Operating income MYR 722.1M
• ▍Net margin 7.6%