Stock Name: MAHSING
Company Name: MAH SING GROUP BHD
KUALA LUMPUR: CIMB Equities Research said in view of renewed global economic uncertainty, the recent global stockmarket slump and concerns over potential measures by the Malaysian government to cool down the property sector, it is changing the target basis for Mah Sing Group from P/E to RNAV.
It said on Thursday, Oct 6 that this is in line with most of its larger peers to which the research house has assigned RNAV discounts of up to 40% for the smaller less liquid developers.
SP Setia is the only company assigned a premium as it is the bellwether of the property sector. Like UEM Land, it valued Mah Sing at its RNAV.
'As a result, the target price for Mah Sing falls from RM3.55 to RM2.64. Note that Mah Sing's RNAV has been raised from RM2.54 to RM2.64 due to the surplus value of the new landbank.
'Despite the lower target, Mah Sing remains our preferred pick in the property sector,' it said.
To recap, Mah Sing had acquired 226 acres of land in Rawang for RM92 million which CIMB Research described as good news as it is a significant move that will boost longer-term contributions from township developments.
'This could be the start of brisk newsflow on landbanking in the coming months,' it said.
Company Name: MAH SING GROUP BHD
| Research House: CIMB | Price Call: BUY | Target Price: 2.64 |
KUALA LUMPUR: CIMB Equities Research said in view of renewed global economic uncertainty, the recent global stockmarket slump and concerns over potential measures by the Malaysian government to cool down the property sector, it is changing the target basis for Mah Sing Group from P/E to RNAV.
It said on Thursday, Oct 6 that this is in line with most of its larger peers to which the research house has assigned RNAV discounts of up to 40% for the smaller less liquid developers.
SP Setia is the only company assigned a premium as it is the bellwether of the property sector. Like UEM Land, it valued Mah Sing at its RNAV.
'As a result, the target price for Mah Sing falls from RM3.55 to RM2.64. Note that Mah Sing's RNAV has been raised from RM2.54 to RM2.64 due to the surplus value of the new landbank.
'Despite the lower target, Mah Sing remains our preferred pick in the property sector,' it said.
To recap, Mah Sing had acquired 226 acres of land in Rawang for RM92 million which CIMB Research described as good news as it is a significant move that will boost longer-term contributions from township developments.
'This could be the start of brisk newsflow on landbanking in the coming months,' it said.
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