MIDF Research maintains 'buy' call on Mah Sing Group

KUALA LUMPUR: MIDF Research is maintaining its "buy" call on Mah Sing Group Bhd with a lower target price of RM3.08, on strong fundamentals and unbilled sales of RM3.6 billion.

The research house said the property developer's new land acquisitions for the 2013 financial year also appears to have shifted towards relatively more affordable pricing.

"The maiden launches of Mah Sing’s recent acquisitions will be priced at around RM650-RM700 per sq ft, which is relatively more affordable than the ongoing projects in Ampang and Petaling Jaya, like M-City and IconCity.

"We are optimistic over the affordably-priced future projects which will be more resilient compared with the high-end high-rise developments," it said in a note today.

Year-to-date, Mah Sing has acquired four parcels of land at a total cost of RM708 million, which is expected to contribute a total gross development value of RM7.8 billion to the group.

"The company said it is on track to meet the 2013 financial year targeted sales of RM3 billion, with the top five contributors being Icon City Petaling Jaya, Meridin@Medini, M Residence and M Residence 2, Garden Residence and Garden Plaza, as well as M City Jalan Ampang.

"Collectively, these projects are expected to contribute about 50 per cent of total targeted sales in the 2013 financial year," MIDF Research added. - Bernama