Property developers are set to record better earnings in 2021, as the market is anticipated to slowly regain some confidence going into next year.
TA Securities said economic recovery, an accommodative interest-rate environment and friendly measures such as the reintroduction of the Home Ownership Campaign and stimulus packages under the National Economic Recovery Plan (Penjana) will help to spur demand for properties.
“We believe the worst is behind us and recovery is underway. Amid uncertainties, our in-house 2021 gross domestic product (GDP) projection of 6.4% year-on-year is conservative, vis-a-vis the forecasts of the International Monetary Fund, World Bank and Asian Development Bank of 7.8%, 6.7% and 7.0%, respectively.
BASIC INFORMATION ABOUT TSRCAP
TSR Capital Berhad has been listed on the Main Board of Bursa Malaysia Securities Berhad since 2002.
TSR Capital Bhd is engaged in the construction and property development activities in Malaysia. Th group’s business segments are Construction, Manufacturing, Investing, and Property Development. The Construction division undertakes civil engineering works, which include the construction of highway, buildings and infrastructure works, whereas Manufacturing segment relates to the manufacturing and trading of precast concrete products. The Property division includes the development of residential and commercial properties, property investment and management. The Construction segment contributes majorly to the company’s revenue.
RITZ is a development on a 20 acre of prime commercial land within the township of Bandar Enstek, Sepang. It will be a new lifestyle mixed development that will promise a premier suburban living experience with residential and commercial components. We envisage an accelerated population growth in the coming years as the area is in vicinity to the more than ten Local and International Educational Institutions, in close proximity to Sepang International Circuit, KLIA, KLIA2 and National Audit Academy, and located immediately next to Techpark @enstek, an industrial hub for high technology and non-pollutant industries.
The overall GDV of the development is approximately RM600 million and the first phase was launched in the third quarter of 2015. This development will be completed in phases, starting with commercial shop lots and a supermarket to cater local demand. The phases to follow are modern Serviced Apartment towers with golf course view, Corporate Office, Hotel and others.
Considering all the above, I opine that current price for TSRCAP is attractive due to below:
i) Trading at 71.21% discount to its NTA
ii) Property developers in for better year
iii) Immediate resistances R1 - 0.305, R2 - 0.49, Support S1- 0.270.
Now Trading at ONLY 0.285 ( Near Support of 0.270 - THUS MINIMAL DOWNSIDE RISK WITH MUCH UPSIDE POTENTIAL)
iii) Chart showing low downside, and high upside potential
iv) Trading in bullish trend, and currently at the near support price, implying a bargain entry into the stock
LET’S SEE HOW THE SHARE PRICE MOVEMENT IN THE NEAR FUTURE FORBEARING ANY GOOD CORPORATE NEWS.
Disclaimer : The above opinion is never intended to be a BUY CALL whatsoever. I am sharing my observations ONLY based on fundamental; past history; current trading pattern; charts etc. Please make your own informed decision before buying this share or whatever share for that matter.
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Nothing to be shout out loud, no bright spot.
By the way, what so special for the discount in NTA for property counter?