KUALA LUMPUR, June 1 — The long-term outlook for Mah Sing Group Bhd is expected to remain positive backed by strong sales achieved in the past few quarters, said AmInvestment Bank Bhd.
The research house expects Mah Sing’s new launches in the Klang Valley to be strong sellers given their strategic locations and attractive pricing.
The property developer chalked up new sales of RM247million for the first quarter financial year 2020 (1QFY20) while maintaining its RM1.6 billion FY20 sales target.
“On a positive note, the company has received RM37 million new bookings per week via its digital platforms during the movement control order period and is in the midst of converting the bookings into sales.
“Meanwhile, unbilled sales of RM1.69 billion will be progressively recognised over the next three years,” it said in a note today.
Mah Sing has lined up several launches for the rest of FY20 with 84 per cent of them priced below RM700,000, concentrated in the central region of peninsular Malaysia with the key selling points being affordability; strategic locations; and good connectivity.
AmInvestment Bank said Mah Sing has redeemed its RM540 million perpetual sukuk while at the same time, issued RM600 million new Islamic medium-term notes (sukuk murabahah) at 4.35 per cent per annum.
“We reckon that this conversion will provide savings of about RM13 million per year.
“We believe the group is in a strong position to expand its landbank with a cash pile of more than RM1 billion,” it said.
AmInvestment Bank has maintained its ‘buy’ recommendation on Mah Sing with an unchanged fair value of RM0.79 per share. — Bernama
