CGS-CIMB analyst Ngo Siew Teng said with the declining household income due to Covid-19, higher property overhang, potential interest rate hikes, rising construction costs and absence of the Home Ownership Campaign (HOC) in 2022, she remained cautious on the overall property market as buyer sentiment could be impacted by these key headwinds.
Describing Putrajaya's approval for the MRT3 as "timely" and "a shot in the arm for the rather muted construction sector", they pointed out that Gamuda's previous participation in MRT1 and MRT2 via the MMC-Gamuda joint venture (JV) will put the company in good stead for the latest project which was announced on Tuesday (March 15)
The research house said in a note that it sees heightened prospect of a stagflation in the sector due to the Russia-Ukraine conflict which has driven up global commodity prices amid prolonged supply chain disruptions.
“Sunway REIT is our top pick for the REIT sector underpinned by: (i) its diversified investment portfolio which encompasses retail malls, hotels, offices, a university, and hospitals that spread across Malaysia; (ii) strong occupancy rates which have exceeded 90% in retail assets; and (iii) stable rental income generated from the services and industrial segments,” the research house said while maintaining its fair value for the stock at RM1.66.
“Progressive roll-out of the remaining attractions at Genting SkyWorlds is a focus,” the casino and hotel operator said, noting the reopening of Malaysia's borders will further support the group's recovery as improved Covid-19 vaccination rates drive optimism of domestic economic growth.
In a note on Friday (Jan 21), Affin Hwang analyst Ng Chi Hoong said that although the research house believes that there is a high likelihood that GENM's new Genting SkyWorlds outdoor theme park will be opened to the public in 1Q22, Affin Hwang does not expect Genting SkyWorlds’ opening to be a re-rating catalyst for GENM shares.
A spokesman for Causeway Link told the daily that demand is high but the Malaysian bus operator is not allowed to release more tickets, as stipulated by the government.
In a note on Thursday (Jan 6), its analyst Loong Kok Wen who maintained "neutral" on the sector said that despite an encouraging pickup in demand for property in 2021, she believes the sector is still facing negative headwinds that may hinder the continued recovery in property sales as well as earnings growth.
The research house's analyst Izzul Hakim Abdul Molob said in a Wednesday (Dec 15) note that residential volume has picked up in the nine months of 2021 (9M21), with higher average transacted price at RM389,000 a unit (pre-pandemic: RM345,000).
Chin Hin Group Property Bhd (CHGP) rose as much as 1.5 sen or 1.71% to a high of 89 sen on Monday morning, after the group announced plans to acquire a 60% stake in construction firm Makna Setia Sdn Bhd for RM9 million cash to diversify into the infrastructure construction industry.
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