Johor Properties Likely Gaining on Special Economic Zone Catalyst — Market Talk

Malaysia's Johor state-centric properties may see fresh buying interest, CIMB Securities analyst Kenny Mak Hoy Ken says in a note. This That's because the planned rollout of the Johor-Singapore Special Economic Zone investment blueprint and masterplan in 1H as well as Malaysian authorities' corporate value enhancement program could boost sentiment, he says. The JS-SEZ is projected to generate 260 billion ringgit in GDP for Johor by 2030, with the resulting economic spillover expected to support the state's property sector. Among stocks eligible for the corporate value enhancement program, Mak says SP Setia stands out as the most undervalued. CIMB maintains an overweight rating on Malaysian property sector, pegging UEM Sunrise, SP Setia, Sunway, Eco World Development and Mah Sing as its preferred JS-SEZ plays.(yingxian.wong@wsj.com)