In a research note today, Kenanga Investment Bank Bhd said the three projects on the acquired land were located in matured areas with high population catchment, ample accessibilities and large upgraders market since there were few new developments in these areas.
"We are comforted by the group's proactive management in replenishing its gross development value given the rapid launches and swift sales," it said.
The investment bank said the positive improvement in its revenue would include the RM1.1 billion unbilled sales.
It said replenishing township developments via Kinrara project was a plus as the group's existing township landbanks were depleted while mass market provided steady cash flow and tended to be self-financing.
"Although the three new projects will bring in substantial future revenue, the group intends to pace its other project launches to achieve steadier 20 to 25 per cent year-on-year growth over a longer period as opposed to sharp over 25 per cent growth over a shorter term," it said.
Meanwhile, MIDF Research said the proposed developments would provide earnings visibility as well as a buffer to the proposed IFRIC15 standard, where the group might see some lumpy earnings.
In its research note, MIDF said it anticipated a slowdown in land acquisitions from the group in near future as orderbooks remained full and an increase in overnight policy rate might decrease potential and attractive landbank valuations.
Mah Sing rose three sen, or 1.775 per cent, to close at RM1.72.
By Bernama
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