Thursday, October 6, 2011

Mah Sing edges up on Rawang township plan

KUALA LUMPUR: MAH SING GROUP BHD [] shares rose in early trade on Thursday, Oct 6 after it said it ''planning a lifestyle township in Rawang with an estimate gross development value (GDV) of RM948 million.

At 9.05am, Mah Sing rose four sen to RM1.84 with 262,500 shares traded.

Mah Sing said it was acquiring Semai Meranti Sdn Bhd which owns 225.7 acres of freehold within the Northern Growth Corridor in Rawang, for RM57 million.

'The land will be developed into a lifestyle township with an estimated GDV of approximately RM948 million, offering beginner homes priced from RM390,000,' it said.

MIDF Research in a note Oct 6 it was positive over the purchase of land in Rawang as it would enable Mah Sing to balance its portfolio with the stable earnings stream of a township development.

However, the research house said property sales of M Residence might not be as impressive as compared to Mah Sing's existing development in more established areas in KL.

MIDF Research maintained its forecast for Mah Sing pending details on the target launch value for M Residence.

'We are maintaining our Neutral call for Mah Sing with a target price of RM1.71.

'We are ascribing PER of 6.9X against FY12 EPS of 25 sen. The PE of 6.9X is 0.5 standard deviation below the 10-year average PE,' it said.

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