Reiterate OVERWEIGHT. We believe that Bank Negara’s latest measures in capping the LTV ratio would have very limited impact on the real property sector. In continuing with our theme, we maintain our OVERWEIGHT call on the Malaysian property sector and advise investors to accumulate on midto high-end residential property developers, particularly those with primary focus on mid- to high-end landed properties in Malaysia. SP Setia (Buy; TP: RM6.38) remains as our top buy for the sector while other stocks which should feature in investors’ buying list may include Sunrise (Buy; TP: RM4.33) and BRDB (Buy; TP: RM3.06). Any knee-jerk reaction on the latest measure will present an opportunity for investors to accumulate.
