Property firms in mixed performances on MSE
The two property firms Icon Properties plc and Mpico plc have recorded mixed performances on Malawi Stock Exchange (MSE) in the past six months, market report shows.
Icon Properties plc share value has gained 30 percent while Mpico plc’s value has plunged by 37 percent during the period.
MSE trading updates show that on December 31 2023, Icon Properties plc share price was at K11.26 while Mpico plc’s shares were trading at K20.58, but six months into this year, the share prices are valued at K16 and K15, respectively.
Market analysts have attributed the share price movements of the two firms to several factors, including a significant difference of profitability in 2023 where Icon Properties reported K19 billion profit while Mpico’s profit was recorded at K7 billion.
In an interview on Tuesday, Stockbrokers Malawi Limited equity investment a n a l y s t Kondwani Makwakwa said Icon Properties plc is more commercial, mostly housing private sector players while Mpico’s main tenant is government.
He said: “The primary difference between the companies in the industry lies in their profitability, with one company demonstrating higher profitability than the other.
“This disparity may be attributed to several factors. One significant factor could be the variation in the size of their portfolios, which can provide a competitive advantage in revenue generation, ultimately leading to higher profitability.”
According to the two companies’ financial results, In a separate interview, Knight Frank managing director Desmond Namangale said most real estate customers are shifting to modern property which is associated with urbanisation, thereby affecting some players.
He said: “Buyers and renters are increasingly looking for properties that provide convenience, security and comfort.
“Additionally, there is a growing demand for environmentally-friendly and energy-efficient homes. These customer preferences align with global trends in the real estate market, where there is an increasing focus on sustainable and smart living.”
Minority Shareholders Association of Listed Companies secretary general Frank Harawa said the property firms are still struggling and their recovery from Covid-19 has generally been sluggish.
Icon Properties plc profit after-tax jumped by 14.97 percent from K16.7 billion to K19.2 billion in 2013 while Mpico plc recorded a profit drop from K8.1 billion to K7 billion
