CGS-CIMB Securities has cut the FY20-22F earnings per share (EPS) estimates for Mah Sing Group Bhd by 8-25% to reflect weaker new property sales and lower progressive billings due to the Movement Control Order (MCO).
In a note, the research house said it expects the conversion of new property sales to slow down due to limited marketing activities and the absence of Home Ownership Campaign incentives.
“Progressive billing progress could be weaker due to the stop-work order and buyer sentiment could be negatively impacted by slower economic growth,” it said.
However, it said the positive impact from the liberalisation of lending guidelines and year-to-date 50bps cut in the overnight policy rate (OPR) could be offset by the MCO and weaker macro outlook.
Meanwhile, CGS-CIMB said Mah Sing had garnered RM37 mil worth of new bookings in the second week of April after exploring unconventional marketing methods such as virtual sales galleries and internet marketing to boost new sales.
“Mah Sing rolled out virtual show units to enable interested buyers to view them online instead of viewing them at sales galleries.
“Keen buyers will then fill in their contact details online, and the group’s property advisers will reach out to the buyers via live or video chat,” it added.
The research house said the group expects sales momentum to pick up as marketing agents get more familiar with online selling methods. — April 17, 2020, Bernama
