足彩预测（www.99cx.vip）_AmInvestment positive on Mah Sing land acquisition
KUALA LUMPUR: Mah Sing Group Bhd’s acquisition of 6.938 acres of freehold land in Tebrau, Johor Baru, for RM39.29mil will help sustain its property earnings over the medium term, according to AmInvestment Bank Research.
“Overall, we are positive on the acquisition as it will help sustain Mah Sing’s property earnings over the medium term,” AmInvestment said.
The research house said the acquisition price of RM39.3mil (RM130 psf) implied a cost-to-GDV (gross development value) ratio of 8.4%, which is lower than its average land cost-to-GDV ratio of 12%–15% for its overall projects.
“While there were not many identical transactions within the area recently, the asking price for commercial lands surrounding the neighbourhood with similar land size (5.2 to 6.5 acres) ranges from RM120 psf to RM150 psf. Hence, we deem the acquisition price as fair,” AmInvestment said.
Mah Sing has proposed to develop a mixed project that will have an estimated GDV of about RM469mil.
The proposed mixed project, M Minori, will comprise three blocks of serviced suites with 1-bedroom, 2-bedroom and 3-bedroom units, with indicative build-outs ranging from 550 sq ft to 880 sq ft, with indicative prices starting from RM260,000.
“While maintaining our FY22F numbers, we raise FY23F–24F core net profit by 3%–6% to factor in the earnings contribution from the new project, M Minori.
“We maintain ‘buy’ on Mah Sing with a higher SOP-based fair value of RM0.87/share from RM0.85/share, which incorporates a neutral 3-star ESG rating,” AmInvestment said.