“The market is never short of housing supply but the low discretionary income is the main concern.”

The traditional formula of buying a house for investment, either by letting it out and earning rental income or by banking on capital appreciation over time, is no longer so simple today.

The free talk was organised by property portal EdgeProp.my with partner Nippon Paint Malaysia. Nippon Paint was also the venue sponsor.

RHB Research Institute: We trim FY18-FY20F earnings by 1% for housekeeping purposes. However, we nudge up our discount dividend model-based TP to RM1.89 after rolling over our valuation to FY19.

Affin Hwang Capital Research: Although the government cancelled, delayed and renegotiated multiple big infrastructure projects, the RM8.9 billlion Gemas-JB Electrified Double Tracking (EDT), of which YTL is one of the two main sub-contractors, remains intact.

Kenanga Research: Maintain “market perform” with a lower TP of 41 sen.

CGSCIMB Research: We foresee earnings risk from every outcome for MRT2 (AG and UG). 

CGSCIMB Research: We make no revisions to our FY18 to FY20 earnings per share, and dividend discount model-based TP of RM1.49, based on cost of equity of 8% and TG of 1.5%.

Despite the challenging property market environment, S P Setia remains confident of achieving the highest-in-the-industry sales target of RM5 billion for 2018.

The new government’s shift to prioritise inclusiveness in development will see higher allocation of development expenditure to less developed states and expanding public services and utilities.