There's Reason For Concern Over Eastern & Oriental Berhad's (KLSE:E&O) Massive 27% Price Jump
Apr 01
Malaysian (KLSE) Real Estate Industry Analysis
UpdatedApr 18, 2024
DataAggregated Company Financials
Companies88
- 7D-2.7%
- 3M12.2%
- 1Y41.0%
- YTD13.7%
Over the last 7 days, the Real Estate industry has dropped 2.7%, driven by a pullback from UEM Sunrise Berhad of 10%. In contrast, Crescendo Corporation Berhad has gained 13%. This takes the industry's 12 month performance to a gain of 41%. Looking forward, earnings are forecast to grow by 12% annually.
Industry Valuation and Performance
Has the Malaysian Real Estate Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 19 Apr 2024 | RM80.8b | RM40.8b | RM4.1b | 15x | 19.8x | 2x |
| Sun, 17 Mar 2024 | RM76.7b | RM40.6b | RM4.1b | 14.3x | 18.7x | 1.9x |
| Tue, 13 Feb 2024 | RM73.9b | RM40.4b | RM4.1b | 13.1x | 17.8x | 1.8x |
| Thu, 11 Jan 2024 | RM73.2b | RM40.2b | RM4.1b | 12.3x | 17.6x | 1.8x |
| Sat, 09 Dec 2023 | RM67.9b | RM39.9b | RM4.0b | 12.5x | 16.8x | 1.7x |
| Mon, 06 Nov 2023 | RM69.4b | RM38.6b | RM4.4b | 13.8x | 15.9x | 1.8x |
| Wed, 04 Oct 2023 | RM70.3b | RM38.5b | RM4.3b | 14.4x | 16.2x | 1.8x |
| Fri, 01 Sep 2023 | RM70.7b | RM38.4b | RM4.3b | 14.2x | 16.6x | 1.8x |
| Sun, 30 Jul 2023 | RM62.1b | RM37.5b | RM4.1b | 12.6x | 15x | 1.7x |
| Tue, 27 Jun 2023 | RM54.9b | RM36.6b | RM4.0b | 10.5x | 13.9x | 1.5x |
| Thu, 25 May 2023 | RM53.1b | RM35.1b | RM3.4b | 9.9x | 15.6x | 1.5x |
| Sat, 22 Apr 2023 | RM54.1b | RM35.2b | RM3.4b | 10.2x | 16x | 1.5x |
| Mon, 20 Mar 2023 | RM52.1b | RM35.3b | RM3.2b | 10.1x | 16.1x | 1.5x |
| Wed, 15 Feb 2023 | RM52.7b | RM34.6b | RM3.2b | 10.6x | 16.4x | 1.5x |
| Fri, 13 Jan 2023 | RM51.1b | RM34.7b | RM3.2b | 9.7x | 15.9x | 1.5x |
| Sun, 11 Dec 2022 | RM50.9b | RM34.5b | RM3.3b | 10.1x | 15.7x | 1.5x |
| Tue, 08 Nov 2022 | RM47.4b | RM31.8b | RM2.3b | 10.3x | 20.8x | 1.5x |
| Thu, 06 Oct 2022 | RM46.9b | RM31.7b | RM2.2b | 10.8x | 20.9x | 1.5x |
| Sat, 03 Sep 2022 | RM49.2b | RM31.7b | RM2.6b | 12.1x | 19.3x | 1.6x |
| Mon, 01 Aug 2022 | RM47.9b | RM30.7b | RM2.1b | 13.3x | 22.3x | 1.6x |
| Wed, 29 Jun 2022 | RM47.4b | RM30.8b | RM1.9b | 13.2x | 25.3x | 1.5x |
| Fri, 27 May 2022 | RM50.9b | RM31.2b | RM2.1b | 14x | 24.7x | 1.6x |
| Sun, 24 Apr 2022 | RM54.3b | RM31.8b | RM2.1b | 13.4x | 25.3x | 1.7x |
| Tue, 22 Mar 2022 | RM53.0b | RM31.9b | RM2.2b | 12.5x | 23.6x | 1.7x |
| Thu, 17 Feb 2022 | RM54.2b | RM32.0b | RM1.8b | 14.1x | 30.1x | 1.7x |
| Sat, 15 Jan 2022 | RM53.4b | RM32.0b | RM1.8b | 13.2x | 29.3x | 1.7x |
| Mon, 13 Dec 2021 | RM52.5b | RM32.0b | RM1.9b | 12.5x | 27.5x | 1.6x |
| Wed, 10 Nov 2021 | RM57.6b | RM34.2b | RM1.7b | 11.8x | 33x | 1.7x |
| Fri, 08 Oct 2021 | RM55.2b | RM34.2b | RM1.7b | 11.6x | 31.6x | 1.6x |
| Sun, 05 Sep 2021 | RM54.9b | RM35.1b | RM1.8b | 11.2x | 30x | 1.6x |
| Tue, 03 Aug 2021 | RM52.4b | RM35.1b | RM1.8b | 10.7x | 28.7x | 1.5x |
| Fri, 07 May 2021 | RM55.3b | RM32.9b | RM992.7m | 11.4x | 55.7x | 1.7x |
Price to Earnings Ratio
55.7x
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 19.8x which is lower than its 3-year average PE of 23.1x.
- The 3-year average PS ratio of 1.6x is lower than the industry's current PS ratio of 2.0x.
Past Earnings Growth
- The earnings for companies in the Real Estate industry have grown 60% per year over the last three years.
- Revenues for these companies have grown 7.4% 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 industry?
| MY Market | -1.10% | |
| Real Estate | -2.10% | |
| Real Estate | -2.75% | |
| Real Estate Services | 0% | |
| Real Estate Operating Companies | -0.36% | |
| Diversified Real Estate | -2.39% | |
| Real Estate Development | -2.84% | |
Industry PE
- Investors are most optimistic about the Diversified Real Estate industry even though it's trading below its 3-year average PE ratio of 116x.
- Analysts are expecting annual earnings growth of 8.3%, which is lower than the prior year's growth of 29.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Real Estate Development industry, expecting annual earnings growth of 12% over the next 5 years.
- However this is lower than its past earnings growth rate of 25% per year.
- In contrast, the Diversified Real Estate industry is expected to see its earnings grow by 8.3% 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 | |
|---|---|---|---|---|---|
| CRESNDO Crescendo Corporation Berhad | RM3.90 | 13.4% +RM128.5m | 233.3% | PE19.1x | |
| IBRACO Ibraco Berhad | RM1.06 | 9.8% +RM51.9m | n/a | PE12.6x | |
| IDEAL Ideal Capital Berhad | RM3.20 | 3.2% +RM50.0m | 49.5% | PE25.2x | |
| MENANG Menang Corporation (M) Berhad | RM0.63 | 5.0% +RM16.0m | -21.3% | PE16.6x | |
| OIB Oriental Interest Berhad | RM1.26 | 2.4% +RM13.9m | 31.3% | PE7x |
