AmInvestment believes that the mid-to-long-term outlook for Mah Sing is to remain positive due to the group’s savvy execution and quick turnaround business model, continuous efforts in digital marketing and strength in offering affordable properties at strategic locations, as well as additional earnings contribution from its newly commenced glove manufacturing business.
Mah Sing achieved its FY2021 sales target of RM1.6billion ( which is a 45% increase YoY). Strong sales were mainly boosted by projects in the central region, particularly M Luna, M Centura and M Arisa, followed by Johor and Penang.
The Group’s unbilled sales grew 16% YoY to RM1.9billion as at 31 December 2021.
Mah Sing set its FY2022 sales target at RM2bil with at least 7 new launches worth RM2.4bil, of which 94% are priced below RM700K and 60% below RM500K.
KAF also maintains the BUY call on this counter. The research house raised Mah Sing’s target price to RM1.20 based on the group’s sustainable property demand for niche affordable housing and its quick turnaround projects in the city centre, as well as landed projects in outlying areas that are appealing to young working adults and first time home buyers.
Mah Sing achieved its 2021 sales target of RM1.6 billion. 80% were secured from its M Series products – M Luna (Kepong), M Centura/Arisa (Sentul), M Vertica (Cheras), M Adora (Melawati), M Oscar (Kuchai Lama), and M Aruna (Rawang).
The group sets its 2022 sales target at RM2.0billion as sales performance to continue to grow in 2022. This is in line with KAF’s presales target for the Group.
Mah Sing reported net profit of RM 107 million (after PERP distribution), +375% yoy.
In 2021, the group’s net gearing increased to 33% (from 25%) reaching the industry’s gearing level, due to the acquisition of several lands in Klang Valley and also some CAPEX for its gloves and plastic businesses.
Mah Sing plans to continue its land banking activities and considering new potential target areas such as Seremban, Melaka and Perak. This shows the management’s confidence in the prospect of the property market.
KAF believes that Mah Sing will be able to achieve its presales target in 2022 due to its price point strategy (with more than 60% of its targeted launches to be priced below RM500k/unit) at strategic locations.
