Mah Sing (BUY) - Creating a new buzz in Rawang

Stock Name: MAHSING
Company Name: MAH SING GROUP BHD

Research House: HLG

Price Call: BUY

Target Price: 2.44

Mah Sing (BUY)

Creating a new buzz in Rawang

• Mah Sing is acquiring 157 acres of leasehold land near to M Residence @Rawang to develop M Residence 2 @ Rawang.
• We are very positive as it allows Mah Sing to ride on the strongspillover demand from M Residence, and expect strong development margins giventhat land cost is very reasonable at RM6 psf. 
• Earnings contribution from FY13 onwards; we raise our FY13-14 earningsestimate by 2-4%.
• We raise our RNAV-based price target from RM2.37 to RM2.44, to factor inearnings accretion from the new project.  Maintain BUY rating.

Source: HLIB Research 1 March 2012