Mah Sing heads into 2024 on positive note, set to post stronger sales

PETALING JAYA: Rakuten Trade Sdn Bhd has placed a “buy” call on Mah Sing Group Bhd with a higher target price of RM1.11 from RM0.87, in anticipation of stronger sales this year.

In a research note, Rakuten Trade said the property developer has a total remaining gross development value (GDV) of RM24.4bil on 2,286 acres of land bank.

Mah Sing had acquired several land parcels last year, amounting to a combined GDV of RM5.5bil.

It added that a bulk of these land parcels are set for launch this year, namely M Terra, Puchong (high rise); M Tiara, Johor Baru (landed); M Zenya, Kepong (high rise); Glengowrie Estate, Semenyih (landed) and M Azura, Setapak (high rise).

Overall, Mah Sing will launch a total GDV of RM2.5bil this year.

According to Rakuten Trade, the property developer’s current projects have been well received, with many achieving full sales.

Notedly, 60% of the company’s launches are priced below RM500,000 while 36% are priced between RM500,000 and RM700,000.

Over the past three years, Mah Sing achieved commendable take-up rates for its new launches.

“Other projects such as M Senyum, Salak Tinggi; M Astra, Setapak; M Vertica, Cheras; M Panora, Rawang and Meridin East, Johor Baru, have achieved average take up rates of more than 90%,” it said.

The research house said Mah Sing has expressed confidence that it will hit its sales target of RM2.2bil, with RM1.8bil already achieved for the first nine months of 2023 (9M23).

“Based on management guidance, the sales target for 2024 will be higher than total sales in 2023 that will be announced in February.

“We expect Mah Sing to register net earnings of RM218mil and RM236mil for financial year 2024 (FY24) and FY25, respectively.

“This will be underpinned by strong unbilled sales of RM2.42bil (as at 9M23) and higher revenue recognition, given the completion of several current projects,” it said.