KUALA LUMPUR, 15 January 2020 – AmInvestment Bank has maintained its ‘buy’ recommendation on Mah Sing Group with an unchanged fair value of RM1.13 per share as its current share price offers the potential upside of more than 60 per cent.
“We believe the long-term outlook for Mah Sing remains positive backed by strong sales achieved in the past few quarters.
“Moreover, we expect the upcoming launches to be well received given their strategic locations and attractive pricing,” the research house said in a note today.
As at 10.08 am, Mah Sing’s price on Bursa Malaysia was flat at 70 sen with 129,800 shares changing hands.
In the nine-month financial year 2019 (FY19), the property developer chalked up new sales of RM1.136 billion and is on track to achieve its FY19 target of RM1.5 billion.
The sales were mainly secured from new launches during the year, mainly priced below RM500,000.
As for 2020, Mah Sing is targeting new sales of at least RM1.5 billion and has also lined up several launches with a combined gross development value of RM1.8 billion which is 80 per cent higher than FY19’s RM1.0 billion.
About 75 per cent of this year’s launches will be concentrated in the central region of Peninsular Malaysia with the key selling points being affordability; strategic locations; and good connectivity.