Journey to Wealth
Mah Sing Group - Strong interest in Southville City BUY
- We reaffirm our BUY on Mah Sing Group (Mah Sing), with our fair value unchanged at RM3.60/share, based on a 25% discount to our NAV estimate of RM4.80/share. Our fair value implies a PE of 12x on FY13F's earnings.
- We spoke to the management to get updates on the launch of Southville City. We understand the development has so far seen a very strong interest with about 4,000 registrants for Phase 1 ' since the registration opened at end-May.
- The majority of the registrants (estimated at 75%) are eyeing the terraced-houses, while the remaining 25% are interested to purchase the affordable units (Savanna Suites). Recall that we highlighted in our previous report (dated 1 Oct 2012) that there had been some revisions to development plans of Southville City, where Phase 1 would include the offer of affordable homes.
- To recap, Savanna Suites would have a GDV of RM270mil and will comprise 1,000 units of: (1) Studio suites ' priced from RM208,000, (2) 1-Bedroom (from RM268,000), and (3) 2-bedrooms (from RM338,000). We gather margins would remain decent at 15%-20% despite the attractive prices.
- Savanna suites would be built on the commercial plot, which should eliminate some concerns about the potential waning of the appeal of the township given the emergence of the affordable units. In fact, these units would provide the critical mass and should add to the vibrancy of the commercial area within Southville City.
- The commercial plot has a direct frontage to the North-South Expressway, and is earmarked to be the commercial hub of the southern corridor Klang Valley.
- Mah Sing remains undervalued and currently trades at a steep 53% discount to its estimated NAV and an attractive PE of 7x FY13F earnings. We expect valuation to catch up, having seen the stock oversold the past week due to misplaced concerns about further restrictive policies by the regulators.
Source: AmeSecurities
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
More articles on Journey to Wealth
Ekovest: No plan to launch another offer for Iskandar Waterfront City
Created by kiasutrader | Mar 29, 2018
Kenanga Research - On our Portfolio - Parliament dissolution around the corner?
Created by kiasutrader | Mar 25, 2013
Plantation Sector - Proposed accounting standard scrapped OVERWEIGHT
Created by kiasutrader | Mar 25, 2013
Pavilion Reit - Limited upside, earnings upside have been priced in HOLD
Created by kiasutrader | Mar 25, 2013
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
Apps
Top Articles
2
3
Koon Yew Yin's Blog
CPO price is rising rapidly as shown by chart below - Koon Yew Yin
4
Axcapital's investment blog
KAB - Executing its way to a record quarter. Could more Petronas contracts be coming?
5
Mercury Securities Research
6
BFM Podcast
7
8
BFM Podcast
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
