Maintain Hold. We are not overly excited about MSGB's latest 4.3-acre land acquisition in Kota Kinabalu (KK) given its relatively high pricing. Development on the land, with an e.RM300m GDV, is expected to enhance our earnings estimates by 1-3%. Separately, we are concern on the termination of the RM220m in enbloc sale (or 96 units) for Icon Residence Mont Kiara (IRMK) due to rising sales risk in the Mont Kiara area. All in all, we adjust our earnings by -3% to +1.5%. Our RM1.77 TP is based on a 40% discount to our RM2.95 RNAV.
Maybank Research 27 March 2012
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