Investment Highlights

• We maintain our BUY recommendation on Mah Sing with an unchanged fair value of RM1.13 per share, based on a 45% discount to its RNAV (Exhibit 5). We made no changes to our FY19–21 numbers.

• We attended the launching of M Oscar yesterday at its sales office, at Seri Gembira Avenue, Taman Gembira in KL. M Oscar is sitting on a 4.63-acre freehold land which Mah Sing acquired in March 2019 for RM78mil. The project is located in the vicinity of Old Klang Road, Sri Petaling, Bukit Jalil and Salak South, and is within a 10km radius of KLCC, Cheras, Ampang, Petaling Jaya and Seri Kembangan.

• The M Oscar project comprises 910 residential units and has a GDV of RM500mil which will be developed over a span of 4– 5 years. Targeted towards the middle-income segment, M Oscar’s price starts from RM428K per unit for the 700 sq. ft. unit with 2-bedroom and 2 parking bays while the RM800k+ 1,200 sq. ft. 4-bedroom unit comes with 4 parking bays.

• M Oscar is touted as an understated luxury, with an impressive grand lobby. Featuring three key concepts — Canyons, Stars and Water — the development takes pride in a grand double-volume entrance statement, star-lit podium deck and meandering river streams, respectively.

• In addition, M Oscar comes with a wide array of facilities such as multi-tiered security, swimming pool, gymnasium, yoga deck, private theatre, game room, garden, jogging park, centralised garbage disposal system etc.

• We expect M Oscar to be well received given its affordable pricing and strategic location as the New Pantai Expressway (NPE) and Kajang Dispersal Link Expressway (SILK highway) are just 1.1km away, while the KESAS Highway, KL Seremban Highway, Maju Expressway (MEX) and Smart Tunnel are all within 4.8km. Meanwhile, the proposed Taman Naga Emas MRT2 station will be located 800m from M Oscar. According to Mah Sing, the property’s management will provide private shuttle service to the MRT station.

• We believe the long-term outlook for Mah Sing remains positive backed by strong sales achieved in the past few quarters. Moreover, we expect recent acquisitions to be strong sellers given their strategic locations and attractive pricing. Maintain BUY recommendation

Source: AmInvest Research - 3 Oct 2019