MKH – BENEFICIARY OF 2019 BUDGET

(Initiated Price : RM1.23     Target Price : RM2.00)

2019 BUDGET MEASURES

As expected, the 2019 budget announced last Friday was giving a few incentives and positive measures to the property market especially the affordable housing sector. The first RM300k of residential unit purchases (below RM500k) is exempted from stamp duty.

Another positive measure from the budget is the introduction of P2P Crowdfunding. For the last few years, the bank housing loan approval rate was low and it was the main reason for the slowdown in the property market. The proposed P2P Crowdfunding measure will enable more house buyers to have access to bank loans as well as P2P Crowdfunding loans. These measures are expected to improve the property market significantly. 

MKH TRANSPORT ORIENTED DEVELOPMENTS

In this week's TheEdge, The MD, Tan Sri Eddy Chen said that MKH is one of the biggest TOD developers in the market. MKH has land near to 7 MRT or KTM Station. MKH has pieces of land near to Titiwangsa, Batu 11 Cheras, Sungai Jernih, Kajang Stadium, Kajang MRT stations. It also has lands near to Kajang 2 and Nilai KTM Komuter stations. I think MKH could actually be the biggest TOD developer in Malaysia.

One of the TOD projects in Sungai Jernih MRT Station was announced last week as a joint venture with Sunway. Sunway will hold 60% of the project and MKH will hold the remaining 40%. The mixed development project has a GDV of RM460mil project.

From this week’s TheEdge, another project that will be launched soon is the TOD project named as Youth City near to Nilai KTM Komuter Station. The project is neighbouring a retail mall (Aeon Mall) and two hypermarkets (Tesco and Giant). Therefore, we can foresee that the project will be well received because of the location and it is categorised as affordable housing. The GDV of the project is about RM660mil.  

The jewel in the crown of MKH is the 525 acres Kajang 2 project. The project again is linked to Kajang 2 KTM Komuter Station. The Kajang 2 development will be rolled out at a faster pace as the interchange with Silk Highway and flyover to Bandar Baru Bangi are opened to traffics. Kajang 2 also witnessed the premium developer Tropicana as its neighbour. Tropicana Heights development is selling well at premium prices. Tropicana Heights is actually bringing up the image of the whole Kajang 2 and it has assisted in the marketing of Kajang 2 project.

PRIMA HOUSING PROJECTS

Last but not least, MKH is also working very closely with Prima. In fact, MKH’s  MD, Tan Sri Eddy Chen is actually the Chairman of Prima. MKH currently has two PRIMA projects namely PRIMA @ Kajang and PRIMA @ Bandar Teknologi. Both of the projects are in Kajang.