We raise our fair value to MYR3.70 and maintain our Trading Buy rating. Mah Sing’s 1Q13 results were in line with expectations. Property sales amounted to MYR750m in 1Q, on track to meet its MYR3bn sales target this year. About MYR3.7bn worth of projects are slated for launch this year. Meanwhile, Mah Sing has also announced two land deals that boost portfolio GDV by MYR5.5bn to MYR22.8bn. 

-  Within expectations. Mah Sing’s 1Q13 results were in line with our and market expectations. The mild decline in turnover was mainly attributed to the initial substructure construction progress for M City, Icon City and Southbay City. The better product mix and higher profit recognition from properties handed over have led EBIT margin expanded to 20% from 16% in 4Q12.

- Property sales amounted to MYR750m. Mah Sing achieved MYR750m new sales in 1Q, largely driven by the successful launch of i-Parc at Tanjung Pelepas, as well as other existing projects such as M Residence 1 & 2, Icon Residence Mont’ Kiara and Garden Plaza Cyberjaya. Unbilled sales, as a result, have amounted to MYR3.55bn, a 12% increase from MYR3.16bn in 4Q12. In view of the amount of launches in the pipeline, and the recent sales of Meridin @ Medini which has hit a take-up rate of 75%, Mah Sing will be on track to achieve its MYR3bn sales target.

- New land deals. Mah Sing has just added two new landbanks, carrying MYR5.5bn GDV, into its portfolio. One of the parcels is located at Senibong Cove/Permas Jaya, measuring 35.3 acres, while another parcel is located at Taman Wahyu, Selayang. With Mah Sing’s latest cash pile of MYR822m (net gearing at 19%), these two parcels of land costing MYR438m will be easily paid off. Earliest launch for these two new projects will be in 1H2014.

- Forecasts. Unchanged.   

- Fair value raised to MYR3.70. Apart from the new land parcels, Mah Sing has also improved the masterplan for Southville City Bangi. GDV, as a result, is enhanced to MYR5.13bn, from MYR3.63bn. After we update the latest landbank and GDV data, our fair value is now raised to MYR3.70, based on a 10% premium to RNAV (from 10% discount). We maintain our Trading Buy rating.

Source: RHB