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

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 strong spillover demand from M Residence, and expect strong development margins given that land cost is very reasonable at RM6 psf. 
• Earnings contribution from FY13 onwards; we raise our FY13-14 earnings estimate by 2-4%.
• We raise our RNAV-based price target from RM2.37 to RM2.44, to factor in earnings accretion from the new project.  Maintain BUY rating.

Source: HLIB Research 1 March 2012