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Wednesday, October 20, 2010

'Mah Sing's landbanking will gather momentum'

MIDF Research believes Mah Sing Bhd's landbanking activities will gather momentum despite the company's recent RM1.1 billion acquisition of Kinrara, Subang-Damansara and Bukit Jelutong land parcels.

Mah Sing's combined gross development value balance and unbilled sales presently stood at RM6.27 billion and RM1.17 billion respectively, the research house in its equity note today.

It also expected Mah Sing's year-on-year earnings growth for the second half of this year to be in the region of 25 per cent.
Mah Sing has revised its sales target for this year to RM1.5 billion after exceeding its earlier target of RM1 billion in July with aggressive new launches.

MIDF Research said Mah Sing would be able to replenish its unbilled sales with the planned new launches in the fourth quarter of this year, thus translating into higher revenue and therefore earnings going forward.

Projects that are scheduled to be launched include Garden Plaza in Cyberjaya, Star Avenue (Damansara), Southbay Plaza (Penang), Icon City (Petaling Jaya) and Kinrara Residence.

MIDF Research said the proposed issuance of RM325 million seven-year redeemable convertible secured bonds (RCSB) was part of Mah Sing's medium-term strategy to focus on acquiring sizeable land bank for potential mass housing development.

"The RCSB proceeds would be sufficient to acquire sizeable piece of circa 190-200 acres of development land in Cyberjaya," it added.

Mah Sing's current projects in Cyberjaya are Garden Residence and Garden Plaza.

By Bernama

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