DJ MARKET TALK: UOB-KH Cuts SP Setia To Hold, Raises Target 11%

0544 GMT [Dow Jones] STOCK CALL: UOB-KayHian cuts SP Setia (8664.KU) to Hold from Buy as stock has risen 17% since December, but raises fair price to MYR4.66 (implies 22X FY10 P/E, slightly lower than FY07's 24X peak valuation) from MYR4.20 after strong 1Q10 sales lead to management increasing full-year sales target to MYR2 billion from MYR1.6 billion. "While we remain positive on its new sales momentum and earnings growth potential, we believe these have been priced into the stock," says UOB; says property firm's 1Q10 net profit could have increased 74% on-year, mainly due to an across-the-board higher sales in Klang Valley, Johor and Penang. Company posted 1Q09 net profit of MYR31.2 million; results due March 18 after 0900 GMT. Stock last +1.9% at MYR4.28.