Investors should remember that in the property sector there have been weak profits in Q1, although RLC and VLL both have achieved better than anticipated results among the stocks that we carefully track. The former has even seen the degree of office occupancy improved (while others have seen considerable decreases), while the latter has shown the most resiliency regarding mall income. Between the two, VLL seems to be the more fascinating investment considering the fact that it has been the 8th poorest performance in the overall market since the beginning of last year while exceeding its rivals in terms of earnings growth. For investors who already have a considerable amount of exposure to such industry, we recommend that they lower their holdings in SMPH (if they have one), which is already trading at a premium to its long-term average price-to-earnings ratio.


The recovery of HOME from the pandemic has been on par with, if not better than, that of Wilcon. Despite this, the former’s stock price has fallen by 31.5 percent since the beginning of 2020, and the latter’s stock price has already risen by 6.3 percent. Based on a differential of close to 40%, this difference in value between the two stocks has lead to a huge gap in valuation (30.6x vs. 19.2x on forward P/E), making All Home as the presently cheapest home improvement in the region. While WLCON continues to be one of our favorite stocks and deserves to trade at a premium, we feel that investors with fresh money to invest in the market should put it in HOME.


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