30th Sep 2013
KUALA LUMPUR: Maybank KE Research has had its attention drawn to Mah Sing Group Bhd, following the launch of phase one of the company’s Southville City project in Bangi on Saturday which attracted around 2,500 potential buyers and resulted in 1,068 units (70%) booked.
It is maintaining its Buy call with the target price unchanged at RM2.50 for the stock, which closed last week at RM2.20.
“We are not surprised by the strong response at Mah Sing’s latest launch in Bangi – Southville City @ KL South Phase 1 (RM351mil in GDV) given its strategic location, and, more importantly, its affordable price tag (RM293psf or RM280,000/unit),” the research house said.
“The initial launch plan involved 766 apartment units in Tower B1 and B2. However, another 766 units were opened for booking later in the day in view of the overwhelming response,” it added.
The strong response over the weekend has apparently pushed the company to fast-track its other launches.
“Mah Sing plans to bring forward the launching of another two apartment towers and its lifestyle retail lots (RM1.3mil/unit onwards) next week,” Maybank KE reported.
It pointed out that Mah Sing was now expanding its focus to township developments, which should provide more sustainable earnings growth over the longer-term. The company has proposed to acquire five pieces of new land, which has a potential GDV yield of RM8.2bil, surpassing the company’s 2012 landbanking target of RM5bil in GDV.
“Mah Sing currently trades at undemanding FY14 7.8 times/1.5 times/0.7 times (in terms of) price-earnings ratio/price by volume/price-revaluated net assets value) and 5.1% net yield. A possible set-back could be its high foreign shareholding of 25.4% as at Aug 13,” Maybank KE Research said.
[Source]
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