Mah Sing Berhad : Quick Turnaround Model To Add More Value - 14/10/2010

Projects strategically located. Mah Sing has three projects which are strategically positioned to benefit from the Government’s MRT network development. These are Star Avenue (Sg Buloh station), Icon Mont’ Kiara (Matrade station) and M Suites (Great Eastern mall station). Apart from Star Avenue, which has not been launched, Icon Mont’ Kiara and M Suites projects are well-received thus far, with a take-up rate of 70% for Block 1 and 30% for Block 2 of Icon MK, and 75% for M Suites.

Mah Sing Berhad : Quick Turnaround Model To Add More Value - 14/10/2010

Mah Sing Group Berhad : Raising Fund For Landbank Acquisitions - 13/09/2010

Raising RM325m. Mah Sing announced a proposed issuance of up to RM325m nominal value of 7-year redeemable convertible secured bonds. The convertible bond will have a maturity of 7 years from the date of issuance, with a coupon rate of 3.5% per annum payable on a semi-annual basis. Conversion price will be at a premium of about 15% to the 5-day volume weighted average market price (VWAMP) of Mah Sing shares on a price-fixing date to be determined by the Board. The bond can be converted anytime up to the maturity date of the bond. Details on the bond will be finalised in six months time.

Mah Sing Group Berhad : Raising Fund For Landbank Acquisitions - 13/09/2010

Mah Sing Group Berhad :Getting Stronger - 27/08/2010

Within expectations. Mah Sing’s 2Q10 net profit of RM29.2m (+26.6% yoy and +4.6% qoq) came in within our and consensus estimates. Key projects that contributed to earnings include Perdana Residence 2, Hijauan Residence, Kemuning Reidenc, Aman Perdana, Southgate, StarParc Point, i-Parc, Reidence @ Southbay, and some projects in JB. Given the aggressive new launches, Mah Sing has exceeded its 2010 full year sales target of RM1bn within 7 months, and therefore management is now targeting to achieve > RM1.5bn sales this year.. EBIT margin was however lower in 2Q10, mainly due to rental yield guarantee for Icon Tun Razak, which occupancy rate is still poor. Meanwhile, unbilled sales continued to climb, stood at RM1.17bn as at Jun 2010, from RM1.1bn previously.

Mah Sing Group Berhad :Getting Stronger-27/08/2010

RHB Equity 360° - 12 July 2010 (Motor, B-Toto, Mah Sing; Technical: Titan, Axiata)

Sector Update

Tan Chong : Fair value raised to RM6.16/share (previously RM5.26) - Outperform
UMW : Fair value reduced slightly to RM7.50 (previously RM7.52) - Outperform
MBM : Fair value increased to RM5.31 (previously RM5.04) - Outperform
Proton : Fair value is maintained at RM5.50 based on stripped down book value - Outperform

- We believe it is now the best time to invest in local motor stocks as the motor sector is currently into its second year of a new 3-year cycle that has started in 2009.

RHB Equity 360° - 12 July 2010 (Motor, B-Toto, Mah Sing; Technical: Titan, Axiata)

Mah Sing Berhad : Acquiring Three Land Parcels In The Klang Valley

Acquiring three land parcels in one shot. Mah Sing is acquiring three land parcels in the Klang Valley, i.e. residential in Kinrara, commercial in Sungai Buloh and Industrial in Bukit Jelutong, with a total area of 155 acres for RM276.1m that are expected to fetch a total GDV of RM1,092m (see Table 2).

Mah Sing Berhad : Acquiring Three Land Parcels In The Klang Valley For

Corporate Highlights - 6/7/2010

♦ Kossan Rubber Industries
Visit Note : Demand For Gloves Still Firm

♦ IOI Corporation
News Update : Disposes Of Land For RM53.5m

♦ Mah Sing
News Update : To Take Over A Mahajaya’s Project In Kinrara

Corporate Highlights - 6/7/2010

Mah Sing Group Berhad : To Take Over A Mahajaya’s Project In Kinrara - 6/7/2010

To pick up where Mahajaya let off. Mah Sing is taking over a property project of peer Mahajaya in Taman Damai Utama, Kinrara, Puchong, comprising 180 two- and two-and-a-half-storey link houses with an estimated GDV of RM100m. Mah Sing will pay Mahajaya RM35.4m progressively over 12 months for the project’s 7.59-acre land (net) that forms part of the fairly mature 274-acre Taman Damai Utama (with more than 700 units of residential and commercial properties already being sold and handed over to-date). The land comes with completed infrastructure as well as eight units of show houses. Since the launch by Mahajaya in Apr 2010, 53 units have been sold, while 27 units “booked”.

Mah Sing Group Berhad : To Take Over A Mahajaya’s Project In Kinrara - 6/7/2010

RHB Equity 360° - 6 July 2010 (Kossan, IOIC, Faber, Mah Sing; Technical: Supermax)

- Management is still positive on the demand for gloves and expects it to remain firm moving forward. Currently, Kossan’s average utilisation rate stands at approximately 90% and this has been rather consistent over the past few years despite the increase in production capacity.
- The capacity expansion at its new factory in Jalan Meru is ongoing, and upon completion, this new factory will house a total of 32 double-former lines. This factory currently houses 8 double-former lines, which will start commercial production in Sep’10. All-in, Kossan’s annual production capacity would increase by 20.8% from 12bn pieces currently to 14.5bn pieces by end-2010 and further by 3.5% in 2011 to 15bn pieces.

RHB Equity 360° - 6 July 2010 (Kossan, IOIC, Faber, Mah Sing; Technical: Supermax)

Mah Sing Group Berhad : 1QFY12/10 Net Profit Grows 23% YoY - 27/05/2010

In line. 1QFY12/10 net profit came in within expectations at 25-26% of our full-year forecast and the full-year market consensus. 1QFY12/10 net profit grew +23.2% yoy driven by progress billings from Southgate (commercial project with GDV of RM458m) as well as landed property projects such as Hijauan Residence (GDV of RM315m), Kemuning Residence (RM136m) and Aman Perdana (RM858m) in Klang Valley,
Residence @ Southbay (RM234m) in Penang island as well as Sierra Perdana (RM526m) and Sri Pulai Perdana 2 (RM225m) in Johor Bahru. For 1QFY12/10, the company chalked up impressive sales of RM600.9m (vs. RM170.2m in 1Q09 and RM727m in FY09), already accounting for 59.6% of its FY10 sales target of RM1bn. Meanwhile, the company’s unbilled sales stood at RM1.1bn as at end-1QFY12/10, or 1.6x of our FY12/10 property
revenue forecast.

Mah Sing Group Berhad : 1QFY12/10 Net Profit Grows 23% YoY - 27/05/2010

RHB Equity 360° (MPI, Ta Ann, KLK, RCE, Gent Plant, IJM Land, IJM Plant, IJM Corp, Proton, Tan Chong, Mah Sing, Allianz, MCIL; Technical: UEM Land)

Top Story : MPI – Stronger Growth Ahead Outperform
Briefing Note
♦ MPI expects 4QFY06/10 revenue to register stronger qoq growth, given that 3QFY06/10 qoq growth of +2.0% which bucks the trend of a seasonally weaker quarter.
- Also, MPI expects 4QFY06/10 net profit to grow sequentially on the back of:
1) higher utilisation rate;
2) stronger contribution from MLP and high-density packages; and
3) margin expansion stemming from higher contribution of high-density packages and cost-cutting measures.
♦ We understand that overall utilisation rates have increased to 95% from 85% in 2QFY06/10. Note that utilisation rates for Ipoh, Suzhou, and Dynacraft plants currently stands at 95%, 100%, and 90% respectively (vs. 90%, 100%, and 85% in 3QFY06/10).
♦ Separately, with Ipoh and Suzhou plants currently running at full-capacity, we understand that MPI expects to raise capacity for these plants by 25% and 30% by Sep-10. Note that MPI is targeting to increase its higher-margin MLP capacity to 12m/day by end-FY10 (vs. 8m/day currently). In addition, management had stated that it will be using the spare capacity from the Advance Packages (AP) line to expand its MLP packages as well as high-density packages. Furthermore, given the capex of around RM3m for its new etch and strip plating capacity, MPI expects capacity for Dynacraft’ to increase by 20%.
♦ Maintain Outperform with a fair value of RM8.46/share.

RHB Equity 360°( MPI, Ta Ann, KLK, RCE, Gent Plant, IJM Land, IJM Plant, IJM Corp, Proton, Tan Chong,Mah Si...

Corporate Highlights...-23/04/2010

♦ Property - M-REITs
Sector Update : A New “Norm” To Propel Valuations To New Highs

♦ Motor
Sector Update : March TIV Hit 53-Month High

♦ Mah Sing
News Update : Buys Land In Jalan Ampang

♦ KFC Holdings (M)
News Update : Acquisition Of Land In Johor Bahru

♦ British American Tobacco
Results Note : TIV Remains Under Pressure

Corporate Highlights...-23/04/2010

Mah Sing Group Berhad : Buys Land In Jalan Ampang-23/04/2010

Buys land in Jalan Ampang. Mah Sing has entered into a SPA with Elsinburg Holding S/B for the acquisition of 1.44 acres of freehold commercial land in Jalan Ampang for RM53.8m cash (or RM857 psf). Just next to Great Eastern Mall, the land will be acquired with an approved development plan. In addition, conversion premium to commercial land as well as development order charges have already been paid by the seller. The acquisition is expected to be completed by 2H10.

Mah Sing Group Berhad : Buys Land In Jalan Ampang - 23/04/2010

RHB Equity 360° (MREITS, Motor, Mah Sing, KFC, BAT; Technical: Gamuda) - 23/04/2010

Top Story : MREITS – A new “norm” to propel valuations to new highs Overweight
Sector Update
♦ M-REITs are currently already trading at a slight premium to the historical average. However, we remain bullish on the sector as we expect a new “norm” to gradually emerge, taking the premium higher to match or even surpass the high end of the historical range, propelled by a buoyant stock market, and more importantly, the continued narrowing of the yield gap with S-REITs.
♦ Our belief is supported by narrowing yield gap between M-REITs and S-REITs as well as between MREITs and risk free debt. In view of a buoyant stock market and a new “norm” that is taking shape with the rising relative investability of M-REITs vis-à-vis S-REITs, we expect M-REIT yields to soon revisit the lows of 6.8-7.0% pre-crisis level.
♦ We are maintaining Overweight stance on M-REITs due to: (1) The bright prospects of the investment property sector in Malaysia underpinned by economic growth, rising consumerism backed by a young demographic structure in Malaysia and growing tourist arrival; (2) Rising M-REITs’ relative investability visà- vis S-REITs and risk-free debt on the back of an expanding publicly traded M-REIT sector; and (3) Rising investors’ appetite for asset classes that provide a hedge against inflation such as REITs.

RHB Equity 360° (MREITS, Motor, Mah Sing, KFC, BAT; Technical: Gamuda)-23/04/2010

Mah Sing Group Berhad : 1QFY12/10 Sales More Than Tripled-15/04/2010

1Q sales more than tripled. Mah Sing’s 1QFY12/10 sales more than tripled to RM516m, 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.

Mah Sing Group Berhad : 1QFY12/10 Sales More Than Tripled-15/04/2010

Corporate Highlights...-15/04/2010

♦ Mah Sing
Company Update : 1QFY12/10 Sales More Than Tripled

♦ IJM Corporation
News Update : Secures Two Work Packages Of Murum Access Road Worth RM247m

♦ KNM Group
News Update : Takeover Offer Lapsed

♦ Market Technical Reading
Daily Trading Strategy : More Consolidation If Sentiment Fails To Improve Today...

Corporate Highlights...-15/04/2010

RHB Equity 360° (Mah Sing, IJM, KNM; Technical: Top Glove) - 15/04/2010

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