• Although there were no major surprises from our 3-day Europe roadshow with Mah Sing, our positive view on the company is reinforced by the strong sales that it is chalking up and the likelihood that it will soon secure new earnings-accretive landbank. Including bookings, total YTD sales top RM1.2bn, already putting it halfway to its RM2bn-2.5bn sales target for the full year. Mah Sing remains a BUY and our top pick in the property sector. Also unchanged is our target price of RM3.30 which is based on our target market P/E of 14.5x. The roadshow reaffirms our strong conviction in the stock. Potential re-rating catalysts include 1) record sales from strong takeup of new large projects, 2) robust newsflow due to aggressive landbanking and 3) increasing investor awareness of Mah Sing’s cheap valuations and transformational moves.
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