Top property stock pick, right pricing and exposure

I have 1,300 units of Mah Sing’s stocks, I think for the past 11 months. Not typo, it’s just 1,300 units. At current price, this is only worth RM1,846. My aim is nothing more than just earning some dividends or if the price appreciated over 25%, will sell and go for a good family dinner. It’s also to ensure I get a copy of their financial result on a timely manner. Yes, this is one counter which I believe is worth buying and holding. One famous bank research house just validated my purchase. Macquarie Research picked Mah Sing as its top pick for the Malaysian property market.

The reason for this ranking is because Mah Sing has managed to place itself in the affordable segments and is currently hugely exposed in the Central region. This has given it good support from buyers, especially in the central region. Macquarie Research said, “We think, going forward, the affordable segment with a pricing point of around RM500,000 per unit will continue to drive the sales numbers for property developers.”

Nevertheless, it believes developers with high-end segment offerings are not going to do well because of the slump in oil prices. Main reason is because they believed that the high-end segment buyers used to be the oil and gas players, both expats and the locals. With layoffs and even expatriates being sent back to their base countries, this segment would have less potential buyers. It said that some developers may still do well. For example, Eco World Development Group Bhd which has lots of loyal followers of its chairman, Tan Sri Liew Kee Sin.

investorMah Sing’s shares closed at RM1.42 today. (18th Dec 2015). As per a famous stock related website I visit on and off, there are some potential for this stock. Take a look at the image. Do note that the property market is still slow at this moment and buying property stocks now may require some patience unless there are some huge corporate exercises or the property developer suddenly report an amazing profit. Happy investing.

written on 18 Dec 2015

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