During the property bull run for the last 5 years, a lot of listed developers' profit grow. Thus, their share price also rise. However, does the rise in share price proportionate with the rise in profit?
After screening through the listed property stocks, actually we can find that some small/mid cap companies are still quite "undervalued" at the moment.
The tables below contain some easy-to-get info of most companies listed in property sector of Bursa KLCI. Some of them are not pure property developers. Some other property developers listed in other sectors and those with annual net profit less than RM15mil will not be included in this list. There is no guarantee that the numbers provided here will be 100% accurate.
The "remark" in the table roughly shows the most recent financial result compared to previous results.
Developers with market cap > RM1 billion
| Stock | Cap (mil) | Price | EPS | PE | Div (sen) | DY% | NTA | Remark | ||
| E&O | 2,270 | 2.00 | 11.7 | 17.5 | 4.5 | 2.3 | 1.28 | 1H13 down | ||
| IGB | 3,949 | 2.65 | 12.5 | 21.9 | 7.5 | 2.8 | 2.77 | 1H13 flat | ||
| IJMLand | 4,287 | 2.75 | 15.3 | 19.9 | 5.0 | 1.8 | 1.85 | 1Q14 up up | ||
| Mahsing | 3,372 | 2.43 | 27.6 | 14.6 | 7.6 | 3.0 | 1.50 | 1H13 up | ||
| SPSetia | 7,942 | 3.23 | 20.5 | 20.2 | 14.0 | 4.3 | 2.22 | 3Q13 up | ||
| Sunway | 5,015 | 2.91 | 41.2 | 9.4 | 6.0 | 2.1 | 2.90 | 1H13 up | ||
| SPB | 1,474 | 4.29 | 20.1 | 21.3 | 10.0 | 2.3 | 5.56 | 3Q13 up | ||
| TAGB | 1,439 | 0.29 | 1.7 | 15.6 | 0.6 | 2.1 | 0.47 | 1H14 up | ||
| Trop | 1,678 | 1.52 | 32.1 | 9.9 | 6.4 | 4.2 | 2.45 | 1H13 up | ||
| UEMS | 10,656 | 2.45 | 10.4 | 23.8 | 3.0 | 1.2 | 1.28 | 1H13 up up | ||
| UOADev | 3,202 | 2.39 | 24.6 | 10.6 | 12.0 | 5.0 | 1.80 | 1H13 up | ||
Developers with market cap RM300 million - RM1 billion
| Stock | Cap (mil) | Price | EPS | PE | Div (sen) | DY% | NTA | Remark | ||
| A&M | 336 | 0.92 | 7.4 | 12.4 | x | x | 1.44 | 1H13 flat | ||
| Amprop | 456 | 0.785 | 16.9 | 4.7 | 3.0 | 3.8 | 1.30 | 1Q14 down | ||
| Asas | 330 | 1.72 | 14.3 | 12.1 | 5.0 | 3.0 | 2.18 | 1H13 flat | ||
| BJAsset | 946 | 0.85 | 4.2 | 20.5 | 1.5 | 1.8 | 1.99 | FY13 down | ||
| Cresndo | 736 | 3.23 | 29.1 | 13.2 | 12.0 | 3.7 | 3.02 | 1H14 up up | ||
| Daiman | 577 | 2.72 | 32.7 | 8.4 | 12.0 | 4.4 | 4.89 | FY13 up up | ||
| Glomac | 852 | 1.17 | 14.7 | 8.4 | 6.5 | 5.5 | 1.16 | 1Q14 up | ||
| Guoco | 806 | 1.15 | 6.3 | 19.2 | 2.0 | 1.7 | 1.20 | FY13 up up | ||
| Huayang | 615 | 2.33 | 36.6 | 8.7 | 13.25 | 5.7 | 1.75 | 1Q14 down | ||
| Hunzpty | 499 | 2.34 | 91.6 | 3.0 | 5.6 | 2.4 | 3.84 | FY13 up | ||
| IBHD | 311 | 2.72 | 14.8 | 18.5 | 4.0 | 1.5 | 1.62 | 1H13 up | ||
| KSL | 831 | 2.13 | 34.1 | 6.3 | x | x | 3.16 | 1H13 up up | ||
| LBS | 844 | 1.80 | 9.9 | 22.4 | 2.5 | 1.4 | 1.26 | 1H13 up | ||
| Magna | 350 | 1.05 | 5.3 | 19.8 | 1.5 | 1.4 | 0.54 | 1H13 up | ||
| Malton | 353 | 0.85 | 8.5 | 10.0 | 2.5 | 3.0 | 1.46 | FY13 down | ||
| Matrix | 860 | 2.86 | 34.5 | 8.3 | 15.4* | 5.4* | 1.73 | 1H13 up | ||
| Medainc | 344 | 0.725 | 6.2 | 12.3 | 2* | 2.8* | 0.46 | 1H13 up | ||
| MKH | 908 | 2.60 | 25.4 | 12.3 | 5.0 | 1.9 | 2.62 | 3Q13 up up | ||
| MKLand | 435 | 0.36 | 3.4 | 10.7 | 2.0 | 5.6 | 0.91 | FY13 up up | ||
| Naim | 900 | 3.60 | 37.0 | 10.3 | 8.0 | 2.2 | 3.44 | 1H13 up | ||
| OSKProp | 322 | 1.32 | 15.3 | 10.2 | 7.5 | 5.7 | 1.59 | 1H13 flat | ||
| Paramon | 513 | 1.52 | 16.7 | 9.1 | 8.0 | 5.3 | 2.09 | 1H13 flat | ||
| PJDev | 493 | 1.08 | 13.4 | 8.1 | 5.0 | 4.6 | 2.12 | FY13 up | ||
| Plenitud | 613 | 2.27 | 28.8 | 7.9 | 6.0 | 2.6 | 3.37 | FY13 up | ||
| SDRED | 384 | 0.90 | 11.3 | 8.0 | 2.25 | 2.5 | 1.53 | 1Q14 down | ||
| SHL | 518 | 2.14 | 14.2 | 15.0 | 12.0 | 5.6 | 2.43 | 1Q14 up | ||
| Symlife | 335 | 1.08 | 32.7 | 3.9 | 3.0 | 2.8 | 1.94 | 1Q14 up | ||
| TAHPS | 419 | 5.60 | 19.6 | 28.5 | 20.0 | 3.6 | 5.99 | 1Q14 up up | ||
| Tambun | 486 | 1.44 | 14.9 | 11.9 | 9.1 | 6.3 | 0.76 | 1H13 up | ||
| WingTM | 831 | 2.55 | 42.1 | 6.3 | 10.0 | 3.9 | 3.22 | FY13 up up | ||
| YNHProp | 775 | 1.82 | 12.1 | 15.6 | 3.5 | 1.9 | 2.03 | 1H13 flat | ||
| YTLLand | 827 | 0.98 | 3.0 | 32.8 | x | x | 1.18 | FY13 flat | ||
Developers with market cap < RM300 million
| Stock | Cap (mil) | Price | EPS | PE | Div (sen) | DY% | NTA | Remark | ||
| Asiapac | 137 | 0.14 | 1.8 | 7.8 | x | x | 0.35 | 1Q14 up | ||
| BCB | 138 | 0.67 | 8.2 | 8.4 | x | x | 1.75 | FY13 up up | ||
| CHHB | 284 | 1.03 | 8.9 | 11.6 | x | x | 2.81 | 1H13 up up | ||
| Cview | 223 | 2.23 | 38.0 | 5.9 | 14.0* | 6.3* | 2.01 | 1H13 up up | ||
| Eupe | 95 | 0.745 | 11.6 | 6.4 | 2.0* | 2.7* | 2.06 | 1Q14 down | ||
| Gromutual | 163 | 0.435 | 5.9 | 7.3 | 1.5 | 3.4 | 0.74 | 2Q14 up | ||
| GOB | 182 | 0.80 | 13.4 | 6.0 | x | x | 1.12 | 1Q14 flat | ||
| Ivory | 261 | 0.585 | 8.8 | 8.1 | x | x | 0.83 | 1H13 down | ||
| Keladi | 193 | 0.255 | 7.0 | 3.7 | 0.5 | 2.2 | 0.34 | 1H13 flat | ||
| Ken | 144 | 1.50 | 18.3 | 8.7 | 6.0 | 4.0 | 1.77 | 1H13 down | ||
| L&G | 215 | 0.36 | 7.4 | 4.9 | x | x | 0.56 | 1Q14 up | ||
| LienHoe | 119 | 0.33 | 27.5 | 1.3 | x | x | 0.77 | 1H13 loss | ||
| Menang | 159 | 0.60 | 6.5 | 9.2 | x | x | 0.67 | loss to profit | ||
| Sapres | 131 | 0.94 | 22.1 | 4.2 | 8.6 | 9.2 | 2.43 | 1H13 flat | ||
| SBCcorp | 138 | 1.68 | 32.5 | 5.2 | 4.0 | 2.4 | 3.59 | 1Q14 flat | ||
| Sentoria | 277 | 0.63 | 12.7 | 5.8 | 14.0 | 1.6 | 0.48 | 3Q13 down | ||
| Y&G | 108 | 0.70 | 3.2 | 21.9 | x | x | 1.11 | 1H13 flat | ||
* - dividend not fully declared for the FY
Those companies with low PE ratio in the list are likely to be undervalued. However, the EPS and PE for the latest full financial year may not give us the true picture, as some of the figures are affected by one-off extraordinary gain or loss during the financial year under review.
The tables do not include other important financial ratio such as ROE, gearing etc. Readers are advised to do their own homework to find out more.
With the numbers available here, lets derive some Top 10 companies for fun.
Top 10 Largest Market Capitalization
| Rank | Company | ||
| 1 | UEMS | ||
| 2 | SP Setia | ||
| 3 | Sunway | ||
| 4 | IJM Land | ||
| 5 | IGB | ||
| 6 | Mahsing | ||
| 7 | UOA Dev | ||
| 8 | E&O | ||
| 9 | Tropicana | ||
| 10 | Selangor Prop | ||
Top 10 Companies with Lowest PE Ratio
| Rank | Company | PE x | ||
| 1 | Lien Hoe | 1.3 | ||
| 2 | Hunza | 3.0 | ||
| 3 | Keladi | 3.7 | ||
| 4 | Symphony Life | 3.9 | ||
| 5 | Sapura | 4.2 | ||
| 6 | Amcorp Prop | 4.7 | ||
| 7 | L&G | 4.9 | ||
| 8 | SBC Corp | 5.2 | ||
| 9 | Sentoria | 5.8 | ||
| 10 | Country View | 5.9 | ||
Most of the low PE ratio in the table above are not "justifiable" due to one-off gain and these companies may not be able to match the financial result for the next financial year.
Top 10 Companies with "Justifiable" Low PE ratio
| Rank | Company | PE x | ||
| 1 | L&G | 4.9 | ||
| 2 | SBC Corp | 5.2 | ||
| 3 | Country View | 5.9 | ||
| 4 | KSL | 6.3 | ||
| 4 | WingTai | 6.3 | ||
| 5 | Gromutual | 7.3 | ||
| 6 | Selangor Dredg | 8.0 | ||
| 7 | PJDev | 8.1 | ||
| 8 | Matrix | 8.3 | ||
| 9 | BCB | 8.4 | ||
| 9 | Daiman | 8.4 | ||
| 9 | Glomac | 8.4 | ||
| 10 | Huayang | 8.7 | ||
In my opinion, the low PE ratio of the companies in the table above may be a more accurate representative of its true value.
Top 10 Dividend Yield
| Rank | Company | DY% | ||
| 1 | Country View | 6.3* | ||
| 1 | Tambun | 6.3 | ||
| 2 | Huayang | 5.7 | ||
| 2 | OSK Prop | 5.7 | ||
| 3 | MK Land | 5.6 | ||
| 3 | SHL | 5.6 | ||
| 4 | Glomac | 5.5 | ||
| 5 | Matrix | 5.4* | ||
| 6 | Paramount | 5.3 | ||
| 7 | UOA Dev | 5.0 | ||
| 8 | PJDev | 4.6 | ||
| 9 | Daiman | 4.4 | ||
| 10 | SP Setia | 4.3 | ||
The dividend yield of Sapura Resources (9.2%) is not included in the list as it is likely not sustainable. There are some companies that give bonus issue or share dividend. These are not included in the calculation of dividend yield as well. Some of the dividend are tax-exempted and some are not...
Most of the property developers carry a lot of land with them. Thus their net asset per share is usually high, although these land may not be re-evaluated for a long time. At this moment, there are a lot of companies listed in property sector trading way below their published NTA.
Top 10 Companies with share price lag behind NTA
| Rank | Company | Lag% | ||
| 1 | EUPE | 177 | ||
| 2 | CHHB | 173 | ||
| 3 | BCB | 161 | ||
| 4 | Sapura | 159 | ||
| 5 | MK Land | 153 | ||
| 6 | Asiapac | 150 | ||
| 7 | BJ Assets | 134 | ||
| 8 | LienHoe | 133 | ||
| 9 | SBC Corp | 114 | ||
| 10 | PJ Dev | 96 | ||
Other Prominent Property Developers Not Listed In Property Sector
| Stock | Cap (mil) | Price | EPS | PE | Div (sen) | DY% | NTA | Remark | ||
| Gamuda | 1,0767 | 4.72 | 25.4 | 19.9 | 12.0 | 2.5 | 2.14 | FY13 flat | ||
| IOICorp | 3,4701 | 5.39 | 30.8 | 17.6 | 15.5 | 2.9 | 2.14 | FY13 up | ||
| MRCB | 2,460 | 1.49 | 4.3 | 40.9 | 2.0 | 1.3 | 1.03 | 1H13 down | ||
| Scientex | 1,258 | 5.47 | 51.0 | 11.4 | 26.0 | 4.8 | 2.84 | FY13 up | ||
| SIME | 57,090 | 9.50 | 61.6 | 15.4 | 34.0 | 3.6 | 4.51 | FY13 down | ||
| WCT | 2,676 | 2.46 | 38.6 | 7.3 | 7.0 | 2.8 | 1.95 | 1H13 down | ||
If solely base on PE, DY and recent financial results, we can rate these property developers as below:
Outstanding:
- Country View
- Glomac
- Huayang
- Matrix
- PJDev
Attractive:
- Daiman
- Gromutual
- KSL
- L&G
- MK Land
- OSK Prop
- Paramount
- SBC Corp
- Tambun
- UOA Dev
- WingTai
You should study the balance sheet, financial ratios and competitiveness of these companies to determine which is the best property stock. Of course those big cap developers are not bad too, and their higher range of PE is a norm to them.
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