With growing interest from investors, Mah Sing Group Bhd is now emerging as a steady proxy to the Malaysian real estate sector, as market frontrunner SP Setia Bhd slightly loses interest, according to property analysts.
A report by The Star noted that in the past two weeks, the value of the company's shares increased by about 16 percent, even though it dropped by one sen to RM2.41 in Tuesday.
"Given a changed competitive landscape, Mah Sing's ascendancy under the stewardship of its major shareholder Tan Sri Leong Hoy Kum should now firmly solidify its valuation from long overdue market recognition of its entrepreneurial spirit in driving net asset value growth," said AmResearch.
Based on Bloomberg's survey of 14 analysts, Mah Sing garnered one "sell" call, three "hold" rating and 10 "buy" rating. Consensus target price stood at RM2.54, while consensus net profit for fiscal year ending 31 December 2012 is RM220 million.
Moreover, Mah Sing has two large township projects, the M Residence at Rawang, Selangor and the soon-to-be-launched Southville City at Bangi, which has a gross development value (GDV) of RM2.2 billion.
The group also clinched three parcels of land this year that will generate a GDV of RM3.6 billion, or 73 percent of its RM5 billion 2012 GDV replenishment target. Additionally, Mah Sing's total estimated GDV presently stands at RM16 billion, said AmResearch.
"The group's sales are very much secured with current unbilled sales of RM2.5 billion. It has achieved RM1 billion in new sales up to the middle of May, or accounting for 40 percent of its sales target of RM2.5 billion," added the research house.
No comments:
Post a Comment