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04-06-2023, 03:02 PM
Most of the Bursa sectors suffered in 2020 due to the pandemic. The Bursa property companies were similarly affected.
2 years after this, has the property sector recovered? Looking at the chart below, the answer must be yes. It tracked the revenue and profits of the large Bursa Malaysia property companies over the past 15 years.
![[Image: Burs-property-revenue-and-PAT.png]](https://i.postimg.cc/LXqZHTt0/Burs-property-revenue-and-PAT.png)
Are there signs of continued recovery? I used the gross profitability (gross profits/total assets) for this. According to Professor Novy-Marx, this metric has the same power as PBV in predicting cross section returns of stock.
Looking at the gross profitability trends, you can see that it hit bottom in 2021. I would say that we should expect continued improvements in the coming years.
![[Image: Burs-property-gross-profitability.png]](https://i.postimg.cc/tT7Fsyjk/Burs-property-gross-profitability.png)
The above charts were extracted from my article "Will the Malaysian Property industry turn around by 2024?". Refer to it if you want to see more analysis on the sector.
2 years after this, has the property sector recovered? Looking at the chart below, the answer must be yes. It tracked the revenue and profits of the large Bursa Malaysia property companies over the past 15 years.
Are there signs of continued recovery? I used the gross profitability (gross profits/total assets) for this. According to Professor Novy-Marx, this metric has the same power as PBV in predicting cross section returns of stock.
Looking at the gross profitability trends, you can see that it hit bottom in 2021. I would say that we should expect continued improvements in the coming years.
The above charts were extracted from my article "Will the Malaysian Property industry turn around by 2024?". Refer to it if you want to see more analysis on the sector.