TA Research has maintained a “Buy” recommendation for Mah Sing with a target price of RM0.82. Its target price has been priced down to R0.82 from RM0.88.
Its adjusted lower target price to RM0.82/share, based on a CY22 P/Bk multiple of 0.55x slightly below the group’s 5-year mean of 0.6x.
It said that the manufacturing division, which now includes both the plastic and glove businesses, recorded an operating loss of RM12.3 million in 3Q21.
The research house said that the manufacturing division, which now includes both the plastic and glove businesses, recorded an operating loss of RM12.3mn in 3Q21. TA said that was primarily due to pre-operational expenses at the glove plant and lower production volume due to tightening movement restrictions during the quarter.
“On the property segment, it said that the group’s 9M21 property sales surged 51% YoY to RM1.28bn. Notably, we saw the recent launches such as M Oscar @ Kuchai Lama, M Luna @ Kepong, and M Adora @ Wangsa Melawati have garnered a strong take-up rate of >80%. The research house said that Mah Sing is on track to meet management sales target of RM1.6bn, given that the group has recorded RM1.28bn sales in 9M21,” it says.