Mah Sing (BUY) - 4Q results

Mah Sing (BUY)

4Q results

• FY11 net profit rose 43% yoy to RM168.6m, in-line with consensus but making up only 91% of our FY11 estimate, due to their higher than expected effective tax rate of 29%.
• First and final gross dividend of 11 sen.
• Another record year in sales - RM2.26bn for FY11, but sales continued to slow down in 4Q.  But with ~RM1.0bn in unconverted bookings, we believe their FY12 sales target of RM2.5bn remains achievable.
• Given their intention to acquire land with RM5bn of GDV in 2012, we believe there could be up to five acquisitions, focusing on the affordable housing segment in Klang Valley.
• Rolling over our numbers, our FY12 earnings estimate is revised downwards slightly by 2% to RM241m, but key assumptions remain unchanged.  Maintain target price at RM2.37 (maintain 30% discount to RNAV). BUY  

Source: HLIB Research 29 Feb 2012