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Thursday, August 18, 2011

MAHSING - In line; reiterate OUTPERFORM (CIMB)

Mah Sing’s interim results were in line with our expectations but beat consensus again. 1H11 net profit made up 49.5% of our fullyear forecast and 55% of consensus estimates. The RM1.24bn sales achieved in 1H should be sustainable in 2H given the RM500m additional bookings up to July that should be converted into sales. This means that Mah Sing could exceed its 2011 sales target of RM2bn-2.5bn. Unbilled sales now stand at a record RM1.9bn, up from RM1.6bn in 1Q. We maintain our EPS forecasts and RM3.55 target price, which we continue to base on our CY12 target market P/E of 14.5x. Potential rerating catalysts include 1) newsflow on continued landbanking, 2) sustained strong sales, and 3) accelerating earnings growth. Mah Sing remains our top pick in the property sector.

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