Tuesday, May 22, 2012

Mah Sing Group: Maintain Hold - New Township To Shore Up Growth

Another township to sustain growth. We are positive on MSGB's latest land purchase in Bangi given its fair pricing and good location. More importantly, the new land, slated for the development of bread and butter-type products, will sustain MSGB's long-term growth. This will help to cushion the slowdown in sales of high-rise projects like Icon Residence. We adjust our 2012-14 earnings forecasts by -1.2% to 4.7% but maintain our MYR2.95 RNAV estimate. Target price is unchanged at MYR1.77 (40% discount to RNAV). HOLD.

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Source: Maybank Research - 22 May 2012

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