AMINVESTMENT Bank remained upbeat on Mah Sing Group in view of the property group’s strong position to expand its landbank with a cash pile of more than RM1 bil.
In a note today, the research firm said Mah Sing’s unbilled sales of RM1.73 bil would be progressively recognised over the next three years.
“Mah Sing has received new bookings worth of RM37 mil via its digital platforms (website and mobile app) during the Movement Control Order (MCO) period.
“The company is maintaining its sales target of RM1.6 bil in the financial year (FY) 2020,” it said.
AmInvestment has kept its ‘Buy’ recommendation unchanged as well as retained its FY 2020-2022 earnings forecasts.
To recap, the research house has cut the FY20-22 earnings by 5.2% and 3.9% respectively in its previous sector report dated April 9, 2020 to reflect the impact of the MCO and its spillover effects to the economy, which might result in lower revenue recognition.
“We believe the long-term outlook for Mah Sing remains positive backed by strong sales achieved in the past few quarters.
“Moreover, we expect the new launches in Klang Valley to be strong sellers given their strategic locations and attractive pricing,” it added.
As at 9.07am, the share price of Mah Sing on Bursa Malaysia was flat at 45.5 sen with 984,400 shares changing hands. – April 21, 2020, Bernama
