Mah Sing (BUY)

Roping in Thai partner for Icon City Mall

'''' Mah Sing has entered into an MOU with Central Pattana to possibly develop and manage a 1m sq ft shopping mall within Phase 2 of Icon City.

'''' Central Pattana is Thailand's largest retail developer with more than 2mil square metres of retail shopping centers, and office towers.

'''' We are positive on this development as Mah Sing progressively expands their footprint in the commercial segment. No financial impact expected in FY12 given that Mah Sing is busy with a number of projects including flagship developments in Icon City and M City, as well as M Sentral @ Pekeliling and M Residence @ Rawang.

'''' Maintain BUY Rating as well as our RNAV-based price target of RM2.16 (30% discount to RNAV).

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Taking cues from overseas

'''' Given the hazy outlook, investors should trim positions on further rallies and pocket some profits, as the external wild swings will accelerate an overdue correction on KLCI towards the immediate near term supports at 10-d SMA (now at 1462) and 50-d SMA (1434) pts. Further supports are 61.8% FR at 1421 and 30-d SMA (at 1419) levels. Immediate resistance zones are 38.2% FR (at 1488), 1493 (last week's high) and 1500 psychological barrier.

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TONGHER: Mid to long term targets at RM2.54-2.86''

'''' Given the successful breakout above the mid Bollinger band (now at RM1.96) and downtrend channel (on 27 Oct) coupled with the improving technical landscape, short term upside targets are situated around RM2.35 (200-d SMA) and RM2.42 (weekly upper Bollinger band). A breakout above RM2.42 will drive TONGHER to our mid to long term price objective near Rm2.54 (61.8% FR) and RM2.86 (50% FR). Cut loss below RM1.82.