PROPERTY
$MKH / 6114 (MKH BERHAD)
Research by Kenanga
Neutral
“The Spotlight Remains at Affordable Housing”
We maintain our NEUTRAL stance. We remain cautious on the property sector due to oversupply, high household debt, elevated interest rates and weakened consumer sentiment, which could further be dampened by escalating living costs. There is optimism in the Johor property market fuelled by the Special Economic Zone initiative and seamless public transport connectivity upon the completion of the Johor Bahru-Singapore Rapid Transit System in 2026. Although developers continue to tread cautiously, we see a bright spot in the affordable housing segment and developers that have strong foothold in matured townships. Our sector top pick is MKH (OP; TP: RM2.11) given their focus on affordable units priced below RM500k.
Analyst(s):
Clement Chua
clement.chua@kenanga.com.my