Strong fundamentals · it is best to take advantage of the low investment themes to absorb industrial stocks
(KUALA LUMPUR, 6th) After experiencing an overall panic sell-off, analysts believe that the fundamentals of industrial stocks are good and revolve around many topics. The valuation has now fallen to a reasonable level. It is a good time to take advantage of low absorption to upgrade the rating to “positive.”
Analysts at Bank of Malaysia Investment Bank Research said that due to the global market collapse on Monday, the industrial stocks tracked by the bank ranged from 10% to 16%.
However, on Tuesday, some industrial stocks began to rebound, recovering some of their lost ground. By the time the market was closed in early trading, $SPSETIA.MY$ Shida Group rose 16 cents, or 12.9%, to RM1.40.
At the same time, $SIMEPROP.MY$ Morinami Sangyo and $ECOWLD.MY$ The green heyday and $UEMS.MY$ UEM Sunshine also rose 11.2%, 10.14%, and 10.05%, respectively.
$MAHSING.MY$ Ma Xing Group and $SUNWAY.MY$ Sunway's increase was slightly smaller, up 8% and 4.42%, respectively, and is still a long way from last Friday's closing price.
Looking ahead, analysts believe that the sentiment of industrial stocks may still be weak in the short term, but industry fundamentals are still strong, particularly supported by strong performance from the industrial industry.
Furthermore, the land divestment plans of various industrial development companies will also drive the company's future profit growth and improve debt ratios.
In view of this, analysts believe investors should seize this opportunity and plan ahead of time to deal with upcoming events, namely the Johor-Singapore Special Economic Zone (JSSEZ), data centers, and the Longxin High Speed Rail.
“The short-term catalyst is still JSSEZ. More details will be announced from September to October this year.”
At the same time, analysts believe that the theme driving the industry in the medium term will be data center investment, which may accelerate the company's land divestment plan.
The market rekindles interest
Green Shengshi recently announced a new business, a high-tech industrial park, which targets artificial intelligence, cloud computing, high-tech manufacturing, and R&D.
“In the short term, the company is likely to close more data center land deals. We are confident that ongoing corporate activities, such as investing in industries or other business listings, will reignite interest when the market recovers.”
On the other hand, the likely recovery of the Longxin High Speed Rail may bring short-term trading opportunities to investors.
Based on the above, analysts raised the industrial sector's rating from “neutral” to “positive”. The preferred stocks were Green Shengshi, Shida Group, $TAMBUN.MY$ Evergrande Land and Morinami Industries.
Source: Nanyang Siang Pao
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