We believe that Bank Negara’s latest measures in capping the LTV ratio would have very limited impact on the real property sector. In continuing with our theme, we maintain our OVERWEIGHT call on the Malaysian property sector and advise investors to accumulate on midto high-end residential property developers, particularly those with primary focus on mid- to high-end landed properties in Malaysia. Any knee-jerk reaction on the latest measure will present an opportunity for investors to accumulate.
The table below are the target price for selected developers in property sector.
| Stocks | Current Price (RM) | Target Price (RM) | Upside Potential (%) | Rating |
|---|---|---|---|---|
| SP Setia | 5.10 | 6.38 | 25.2 | Buy |
| IGB Corp | 2.04 | 2.41 | 18.1 | Buy |
| Sunrise | 2.52 | 4.33 | 71.7 | Buy |
| YNH Prop | 1.79 | 3.03 | 69.5 | Buy |
| Bandar Raya | 2.44 | 3.06 | 25.5 | Buy |
| Plenitude | 4.69 | 5.56 | 18.6 | Buy |
| Hunza Prop | 1.63 | 3.08 | 89.1 | Buy |
| Glomac | 1.70 | 1.84 | 7.4 | Buy |
Source : OSK Research
What about 8385 mahsing? It has a lot high end project too.
Unfortunately, Mahsing was not covered by OSK Research. However it is a buy according a research company (it is either Hong Leong or Jupiter) with target price about RM2.