Property Sector

Personally, I believe the above sector will be the winner during the year end rally. By the way, let us hope there is no huge crash from now until year end. Otherwise, we may need to change our strategy again.

Property sector has been a hot topic since the waiver of RGPT, back in somewhere in April. However, quarterly results from the main players are not impressive enough. Perhaps it may take some times for the developers to enjoy better result from the incentive introduced by the Gov? Or maybe the cycle in Malaysia is not correct where HK and Singapore have been enjoying the great development in this sector since 2 years ago?

With the uncertainty of global economic and market at the moment, do the effort from Malaysia Goverment will be enough to support property sector? What will happen to all the high-end projects if economic crisis hits the global market in next 2 years?

Base on historical data, it shows that the crisis hits every 10-12 years. It is 2007 now and the crisis may come the latest by 2009? How many of the high-end projects can be completed by 2009?

Anyway, I believe Mah Sing offers good buying oppurtunity now. The stock price has been in huge selling pressure after the substantial shareholders, Felda continues to dispose their holdings in recent weeks. Perhaps they need the money to buy the en-bloc of The Icon @ Tun Razak? From another prespective, Capital Group is still holding tightly and the price is still below some of the acquisitions done by them. It should be a great value to buy with current price.

Meanwhile, according to Oriental Biz, d7 - a project by YTLLand is selling like a hot cake in the pre-launch. Within an hour, a total of 100 units were 'swept way' by the buyers. YTL Land should be another good bargain hunting stock at currect price as the prospect of Sentul area is good. YTL Land has huge landbanks in Sentul.


Lastly, if you prefer to bet in Northern area, E&O, Asas Dunia and Equine should be in the shortlist. Asas Dunia have landbanks in the mainland while Equine will be enjoying their 20% stake in the company which will be developing PGCC. Even though both Asas Dunia and Equine do not have strong financial results in the past, they have big potential in the future ...