The Daily Pulse of Bursa Malaysia
Mah Sing starts to rise on better sentiments.
The property developer did well to surge some 114.9% over a year, recovering from its low of 82 sen a year ago. The positive sentiments on Mah Sing could stem from the better outlook for Malaysia’s property developers.
They may see valuations of these property developers to rise further even after 2024’s strong rally. Stocks in the high-risk-high-return sector continue to perform.
In particular, developers with growing recurring income and investment portfolios may see rising investor interest. While valuations of big-cap property stocks will likely stay elevated, some smaller-cap quality developers may catch up. The underlying asset values are the key factor supporting valuations, as opposed to the cyclical property development business.
Bursa Malaysia Property Index, which tracks 97 stocks in the sector, have risen 32% last year thanks to the involvement of select companies in the highly-lucrative data centres business and industrial projects that provide recurring income from rental of factories.
The 20 largest property developers by market capitalisation have delivered an average total return of 57% compared to the 16% gain recorded by the subsequent 20 firms. Still, the sector is trading at a 48% discount to their realisable net asset value.
Investors should start to take positions in the likes of Sime Darby Property Bhd, Mah Sing and Matrix Concepts Holdings Bhd. These players have been able to take advantage of their existing landbank and monetise them by developing income-yielding assets.
Meanwhile, smaller-cap developers, particularly those with strong sales, solid finances, strategic landbank and niche projects, are likely to close the valuation gap with their larger peers this year.
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
More articles on The Daily Pulse of Bursa Malaysia
Picking gems in the banking sector amidst challenging environment
Created by zaclim | Feb 14, 2025
It has been intense for the banks as they wrestle for deposits at the expense of margins. Will the banks continue to face net interest margin pressure this year? Which banks will come up tops ?
Bumper year for palm oil companies as prices remain elevated
Created by zaclim | Feb 13, 2025
Investors should consider putting their money in palm oil given the CPO prices, which should remain elevated. This should boost their bottomline and enable these planters to pay higher dividends
A busy year with more LSS packages being announced. Who are the beneficiaries?
Created by zaclim | Feb 12, 2025
In a surprising move, the ministry announced that the LSS6 programme will be up for bidding in the 2Q 2025. Solar companies will be eyeing for a slice of the quota in a bid to expand its business.
Johor’s special financial zone to boost local banks’ growth
Created by zaclim | Feb 12, 2025
The hype on the Forest City Special Financial Zone in Johor has garnered much attention. Which are the likely beneficiaries of the establishment of the zone?
Palm oil producers should step up efforts to increase productivity
Created by zaclim | Feb 10, 2025
It is the case of wanting to ride on the high crude oil prices but having limited amount of land for oil palm cultivation would impede the planters’ ability to maximise profits.
Shaky but stay selectively positive on tech stocks
Created by zaclim | Feb 07, 2025
It has been challenging for the technology sector with the US export curb and higher tariff imposed. What should investors do?
How the additional tariff imposed on China benefits Malaysian glove makers?
Created by zaclim | Feb 07, 2025
One man’s meat is another man’s poison. China is expected to see a drop in its glove exports to the US following the imposition of additional tariffs.
What to look out for in the recently published Petronas Activity Outlook
Created by zaclim | Feb 04, 2025
The oil & gas sector has been rather challenging as there were many uncertainties. However, there are silver linings where investors can make intelligent bets
Petrochemical sector continues face persistent challenges
Created by zaclim | Feb 03, 2025
It has been tough for petrochemical players as they are faced with oversupply issues. Will Petronas Chemicals and Lotte Chemical be able to stem the declining trend?
Opportunities amidst the DeepSeek impact
Created by zaclim | Feb 03, 2025
Hot off the shelves DeepSeek has been gaining traction, causing a frenzy in the AI world, dragging some US tech counters recently. What should investors look out for?
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
MQ Trading Signals
Time
Signal
Duration
Type
2025-02-14 16:50:00
EMA 5
10 Mins
SELL
2025-02-14 16:50:00
ADX
5 Mins
SELL
2025-02-14 16:50:00
TURTLE SYSTEM 20
5 Mins
SELL
2025-02-14 16:40:00
EMA 5
5 Mins
SELL
2025-02-14 16:35:00
EMA 5
5 Mins
BUY
Apps
Top Articles
1
Mercury Securities Research
Genting Malaysia (4715) - Inverse Head and Shoulder Breakout
2
3
THE INVESTMENT APPROACH OF CALVIN TAN
4
AmInvest Research Reports
DIALOG GROUP - Upgrade on recovery thesis post-kitchen sinking quarter
5
6
TA Sector Research
7
MQ Market Updates
8
My Trading Adventure 2025
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
