Top Story : Mah Sing – 1QFY12/10 sales more than tripled Outperform
Visit Note
♦ Mah Sing recorded strong sales of RM516m in 1Q10, from RM170.2m a year ago, thanks to good responses to its new projects. With sales expected to sustain in the coming quarters underpinned by new launches, FY12/10 sales target of RM1bn now appears within reach. Among the new projects we are particularly excited over Southbay City, Garden Residence & Garden Plaza and Icon Residence @ Mont Kiara due to excellent locations and products.
♦ While not generally perceived by the market as one of the front runners for federal land parcels earmarked for development, we feel that investors should not write off Mah Sing entirely as: a) it boasts a decent list of government-linked shareholders; b) it has strong balance sheet with net cash of RM176.5m or 27.9 sen as at 31 Dec 09; and 3) it has good track record in delivering various types of properties.
♦ No change to our net profit forecasts. However, we have adjusted our FY10-12 EPS forecasts for the 1-for- 5 bonus issue that was completed in Apr, resulting in our estimates being lowered by 16.7% p.a..
♦ We have thus also lowered our RNAV based FV from RM2.45 to RM2.04. Maintain Outperform.
RHB Equity 360°(Mah Sing, IJM, KNM; Technical: Top Glove)-15/04/2010
No comments:
Post a Comment