KUALA LUMPUR (Dec 3): RHB Research is keeping its rating on the Malaysian property sector under review and said the latest quarterly results for the property sector were mostly within expectations compared to the last quarter.
In a note Wednesday, the research house said earnings were still largely underpinned by the healthy unbilled sales that the developers secured over the last 1-2 years.
It said of the 11 companies under its coverage that had reported results, four missed our expectations, six came in line, and one beat forecasts.
RHB Research said earnings were generally better than 2Q, which is in line with our expectations, as 2H is typically stronger for developers based on the past trend.
“The pickup in new property sales, however, has tapered off from 2Q, partly due to the timing of the launches.
“Our sector rating is now under review due to the recent changes in economic outlook as a result of the correction in commodity prices.
“We prefer stocks with ongoing corporate exercise, such as Sunway Bhd,” it said.