While Malaysia’s property market remains saddled with various challenges, MKH is expected to perform relatively better given its niche focus on affordable housing in Kajang-Semenyih.
Its total manufacturing tender book is now at RM500 million which is largely skewed towards projects in Singapore, including Industrialised Building System (IBS) related jobs and Deep Tunnel Sewerage System 2. This does not include orders from the North South Corridor Expressway and Jurong Region Line.
Axis REIT has a number of ongoing asset acquisitions at a total estimated value of RM200 million. They include two industrial facilities in Shah Alam (RM55.8 million), two industrial facilities in Nusajaya (RM55.8 million) as well as an industrial facility in Kota Kinabalu (RM60 million).
The dividend yield for CMMT is also high relative to the sector. However, we believe CMMT would likely lag its peers until we see an improved contribution from The Mines and Sungei Wang Plaza.
IJM is also an excellent proxy to the East Coast Rail Link (ECRL) project revival (expected after July 25) which will benefit three of its business divisions — construction, Kuantan Port and manufacturing.
Potential catalyst includes stronger-than-expected rental reversion and better occupancies would lift earnings.
AllianceDBS Research: UEM Sunrise’s vast land bank of 12,800 acres (5,180ha), of which 75% is in Johor, has been heavily discounted by the market which completely belies the real value of the land.
AllianceDBS Research: While we like S P Setia’s growing international expansion to diversify its earnings stream, we believe higher sales growth will be more elusive going forward given its sizeable operations.
Over the medium term, Tropicana City Property still presents CMMT with a good growth avenue.
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