As we mentioned before that we may start to buying back into property related companies. However, we are not into pure developers as we cannot forecast the time of recovery. We likes either developers with their own assets with recurring income as their portfolio. Alternative same as Paramount where portfolio is well divisified from different income stream.
We like OSK as it is still well diversified with property development. Although yesterday result is profit reduced but we believe it’s valuation still cheap with strong book value.
on 2nd choice will be Ken Holdings. A small size developer undervalued but does have quality assets on hand. With a few new projects will turn the company becomes vibrant.
lastly Insas, a consistent income across its portfolio and start to perform well. well balance portfolio with financial arm that we believe will do well in 2018 can deliver potentially more sterling results.
However, no need to jump into the ship. Buy slowly and accumulate. OSK below RM 1.70. Insas and Ken below RM 1.00 can be accumulated with great confidence.