Is Mah Sing Group Berhad (KLSE:MAHSING) A Risky Investment?
Sep 22
Malaysian (KLSE) Real Estate Sector Analysis
UpdatedSep 23, 2023
DataAggregated Company Financials
Companies108
- 7D3.2%
- 3M16.5%
- 1Y22.9%
- YTD20.7%
In the last week, the Real Estate industry is up 3.2%, with UEM Sunrise Berhad up 25%. During this same period, the Tropicana Corporation Berhad underperformed, falling 5.5%. In the last 12 months, the industry was up 23%. As for the next few years, earnings are expected to grow by 4.2% per annum.
Sector Valuation and Performance
Has the Malaysian Real Estate Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 23 Sep 2023 | RM112.9b | RM44.2b | RM7.2b | 15.2x | 15.8x | 2.6x |
| Mon, 21 Aug 2023 | RM106.9b | RM43.1b | RM6.9b | 14.1x | 15.5x | 2.5x |
| Wed, 19 Jul 2023 | RM100.7b | RM43.0b | RM6.9b | 13.1x | 14.5x | 2.3x |
| Fri, 16 Jun 2023 | RM96.1b | RM42.2b | RM6.7b | 12.8x | 14.3x | 2.3x |
| Sun, 14 May 2023 | RM95.0b | RM40.6b | RM6.2b | 12.6x | 15.4x | 2.3x |
| Tue, 11 Apr 2023 | RM96.0b | RM40.5b | RM6.3b | 12.5x | 15.2x | 2.4x |
| Thu, 09 Mar 2023 | RM94.2b | RM40.7b | RM6.0b | 12.3x | 15.7x | 2.3x |
| Sat, 04 Feb 2023 | RM95.5b | RM40.0b | RM5.8b | 12.8x | 16.4x | 2.4x |
| Mon, 02 Jan 2023 | RM88.1b | RM39.8b | RM5.3b | 12x | 16.5x | 2.2x |
| Wed, 30 Nov 2022 | RM88.2b | RM38.6b | RM5.1b | 12.9x | 17.2x | 2.3x |
| Fri, 28 Oct 2022 | RM85.2b | RM36.5b | RM4.2b | 13.3x | 20.5x | 2.3x |
| Sun, 25 Sep 2022 | RM86.2b | RM36.3b | RM4.4b | 13.8x | 19.7x | 2.4x |
| Tue, 23 Aug 2022 | RM89.0b | RM35.4b | RM4.0b | 14.7x | 22.1x | 2.5x |
| Thu, 21 Jul 2022 | RM85.1b | RM35.2b | RM3.8b | 14.1x | 22.4x | 2.4x |
| Sat, 18 Jun 2022 | RM86.5b | RM35.3b | RM3.5b | 14.9x | 24.5x | 2.5x |
| Mon, 16 May 2022 | RM91.0b | RM35.9b | RM3.7b | 15.1x | 24.8x | 2.5x |
| Wed, 13 Apr 2022 | RM93.0b | RM36.1b | RM3.6b | 15.1x | 25.7x | 2.6x |
| Fri, 11 Mar 2022 | RM90.0b | RM36.5b | RM3.8b | 14.3x | 23.7x | 2.5x |
| Sun, 06 Feb 2022 | RM90.7b | RM36.3b | RM3.2b | 15.6x | 28.8x | 2.5x |
| Tue, 04 Jan 2022 | RM91.5b | RM36.2b | RM2.8b | 14.5x | 32.1x | 2.5x |
| Thu, 02 Dec 2021 | RM91.1b | RM36.2b | RM2.9b | 13.4x | 31x | 2.5x |
| Sat, 30 Oct 2021 | RM99.4b | RM38.5b | RM2.8b | 13.6x | 35.6x | 2.6x |
| Mon, 27 Sep 2021 | RM93.7b | RM39.0b | RM2.9b | 13.1x | 32.1x | 2.4x |
| Wed, 25 Aug 2021 | RM92.6b | RM39.4b | RM2.9b | 12.6x | 31.5x | 2.3x |
| Thu, 01 Jul 2021 | RM89.9b | RM39.4b | RM2.9b | 12.8x | 30.5x | 2.3x |
| Sun, 04 Apr 2021 | RM93.8b | RM36.8b | RM1.7b | 14.1x | 54.4x | 2.5x |
| Wed, 06 Jan 2021 | RM91.7b | RM35.4b | RM1.2b | 16.4x | 76.6x | 2.6x |
| Sat, 10 Oct 2020 | RM82.2b | RM36.7b | RM3.2b | 13.8x | 25.4x | 2.2x |
Price to Earnings Ratio
25.4x
Current Industry PE
- Investors are pessimistic on the Malaysian Real Estate industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 15.8x which is lower than its 3-year average PE of 29.5x.
- The industry is trading close to its 3-year average PS ratio of 2.4x.
Past Earnings Growth
- The earnings for companies in the Real Estate industry have grown 30% per year over the last three years.
- Revenues for these companies have grown 6.4% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Malaysian Real Estate sector?
| MY Market | 0.13% | |
| Real Estate | 3.18% | |
| Real Estate | 4.93% | |
| Industrial REITs | 2.05% | |
| Hotel and Resort REITs | 1.98% | |
| Retail REITs | 0.39% | |
| Office REITs | 0.37% | |
| Specialized REITs | 0% | |
| Residential REITs | 0% | |
| Health Care REITs | 0% | |
| REITS | -0.28% | |
Industry PE
- Investors are most optimistic about the Office REITs industry which is trading above its 3-year average PE ratio of 17.1x.
- Analysts are expecting annual earnings growth of 9.0%, which is lower than the prior year's growth of 38.7% per year.
- Investors are most pessimistic about the Industrial REITs industry, which is trading below its 3-year average of 13.4x.
Forecasted Growth
- Analysts are most optimistic on the Office REITs industry, expecting annual earnings growth of 9.0% over the next 5 years.
- However this is lower than its past earnings growth rate of 39% per year.
- In contrast, the Industrial REITs industry is expected to see its earnings decline by 29% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| UEMS UEM Sunrise Berhad | RM0.91 | 24.7% +RM910.5m | 230.9% | PE56.9x | |
| SPSETIA S P Setia Berhad | RM1.03 | 16.4% +RM595.4m | 57.3% | PE34.6x | |
| IOIPG IOI Properties Group Berhad | RM1.69 | 6.3% +RM550.6m | 71.6% | PE6.7x | |
| SIMEPROP Sime Darby Property Berhad | RM0.74 | 6.4% +RM306.0m | 63.7% | PE17.4x | |
| ECOWLD Eco World Development Group Berhad | RM1.10 | 7.8% +RM235.5m | 74.6% | PE17.2x |
