M Nova is the latest project of Mah Sing in Kepong. Previous projects of Mah Sing in Kepong include Lakeville Residence and M Luna. Lakeville Residence is a completed project while M Luna is under construction with construction progress of ~54%, said MIDF Research (MIDF) in the recent Corporate Update Report.
“M Nova is sitting on 8.09 acres of land in Taman Wahyu, Kepong which was acquired in November 2021. The development consists of three blocks of serviced apartments with a total of 1,248 units, built up ranging from 700 to 1,000 sq ft,” said MIDF.
It also comprises 11 units of retail shop lots and one retail drive through. The project has a total gross development value of RM790 million with affordable selling prices starting from RM318k for a 700 sq ft built-up.
M Nova is expected to be officially launched in quarter three calendar year 2023 upon getting Advertising Permit and Developer’s License. Nevertheless, Mah Sing has opened registration of interest for one block of M Nova with 624 units.
“We gather that registration of interest thus far was overwhelming with 9k registered interest. Hence, we expect strong sales prospect for M Nova upon official launch as we think Mah Sing should be able to convert the strong booking into property sales fast due to the overwhelming response from buyers,” said MIDF.
The expected strong sales from M Nova should underpin new sales outlook for Mah Sing. Note that Mah Sing targets to achieve higher new
property sales of RM2.2 billion in financial year 2023 against new property sales of RM2 billion in financial year 2022.
“We gather that Mah Sing remains on acquisition trail despite the recent few land acquisitions. Recall that Mah Sing announced three land acquisitions since the beginning of this year which are lands in Puchong, Johor, and Semenyih,” said MIDF.
Nevertheless, Mah Sing remains on the lookout for land particularly in Klang Valley as its balance sheet remains healthy. Balance sheet of Mah Sing is expected to remain below 0.3x despite the recent few land acquisitions as cash flow from the delivery of ongoing projects is expected to be strong.
In a nutshell, MIDF expects the active acquisition of Mah Sing to underpin new property sales and earnings outlook. Post visit, MIDF makes no changes to their earnings forecast for financial year 2023 future / 2024 future/ 2025 future as new sales contribution from M Nova is expected to underpin management’s new sales target of RM2.2 billion for financial year 2023.
“Our target price is unchanged at RM0.78, based on 65% discount to revalued net asset value. We maintain our Buy call on Mah Sing as new sales prospects is strong, underpinning by launches of M-Series affordable home. Besides, the active land acquisition of Mah Sing will continue to support new property sales outlook and earnings visibility in the near-term,” said MIDF.
