MAHSING (8583) - Mah Sing Group - Bucking the sales downtrend
Target RM2.53 (Stock Rating: ADD)
FY14 results were in line with expectations, as net profit made up 99% of our full-year forecast and 103% of consensus estimates. The group chalked up RM3.43bn new sales for the year, 5% shy of its target but this still represents a 14% increase yoy. This is very commendable given that most of its peers suffered sales declines in 2014. For FY15, Mah Sing is aiming at the minimum to match FY14's new sales, which we believe is achievable as the group has several new projects lined up. We fine-tune our EPS forecasts and RNAV for housekeeping reasons while keeping our target price basis of a 10% discount to RNAV. Mah Sing remains an Add and one of our top picks, with strong earnings growth, new sales and landbanking as potential re-rating catalysts.
Final results in line
Final results were in line with expectations, as core net profit came in 1% below our forecast and 3% above consensus estimates. 4Q net profit increased 20% yoy, driven by the progressive recognition of profits from key projects in PJ, Cyberjaya, Ampang and Rawang. Unbilled sales rose from RM5.06bn in 3Q14 to a record RM5.26bn in 4Q. Mah Sing proposed a first and final dividend of 6.5 sen (8.1 sen after adjusting for its upcoming 1-for-4 bonus issue) which was marginally lower than our forecast of 8.2 sen.
FY14 new sales of RM3.43bn
Mah Sing sold RM3.43bn worth of properties in 2014, up 14% yoy. This came on the back of RM3.94bn worth of launches, 74% of which were in the Klang Valley. Some RM2.51bn or 73% of its 2014 new sales came from the Klang Valley, RM606m or 18% from Johor, RM273m or 8% from Sabah and RM45m or 1% from Penang. 4Q new sales of RM980m was a record high for the group and this represents an increase of 9% qoq and 31% yoy.
Went ex recently for rights
Recall that Mah Sing's share price went ex for the 3-for-10 rights issue (at RM1.42 per share) and the 3-free-warrants-for-10-rights shares (exercise price of RM2.63 and expiration in 2020) on 22 Jan. The proposed 1-for-4 bonus issue is expected to go ex later in 3Q. Proceeds from the rights issue amounted to ~RM630m; RM530m will be used for land and property development, RM92m for working capital and RM8m for proposal-related expenses.
Source: CIMB Daybreak - 17 February 2015
Target RM2.53 (Stock Rating: ADD)
FY14 results were in line with expectations, as net profit made up 99% of our full-year forecast and 103% of consensus estimates. The group chalked up RM3.43bn new sales for the year, 5% shy of its target but this still represents a 14% increase yoy. This is very commendable given that most of its peers suffered sales declines in 2014. For FY15, Mah Sing is aiming at the minimum to match FY14's new sales, which we believe is achievable as the group has several new projects lined up. We fine-tune our EPS forecasts and RNAV for housekeeping reasons while keeping our target price basis of a 10% discount to RNAV. Mah Sing remains an Add and one of our top picks, with strong earnings growth, new sales and landbanking as potential re-rating catalysts.
Final results in line
Final results were in line with expectations, as core net profit came in 1% below our forecast and 3% above consensus estimates. 4Q net profit increased 20% yoy, driven by the progressive recognition of profits from key projects in PJ, Cyberjaya, Ampang and Rawang. Unbilled sales rose from RM5.06bn in 3Q14 to a record RM5.26bn in 4Q. Mah Sing proposed a first and final dividend of 6.5 sen (8.1 sen after adjusting for its upcoming 1-for-4 bonus issue) which was marginally lower than our forecast of 8.2 sen.
FY14 new sales of RM3.43bn
Mah Sing sold RM3.43bn worth of properties in 2014, up 14% yoy. This came on the back of RM3.94bn worth of launches, 74% of which were in the Klang Valley. Some RM2.51bn or 73% of its 2014 new sales came from the Klang Valley, RM606m or 18% from Johor, RM273m or 8% from Sabah and RM45m or 1% from Penang. 4Q new sales of RM980m was a record high for the group and this represents an increase of 9% qoq and 31% yoy.
Went ex recently for rights
Recall that Mah Sing's share price went ex for the 3-for-10 rights issue (at RM1.42 per share) and the 3-free-warrants-for-10-rights shares (exercise price of RM2.63 and expiration in 2020) on 22 Jan. The proposed 1-for-4 bonus issue is expected to go ex later in 3Q. Proceeds from the rights issue amounted to ~RM630m; RM530m will be used for land and property development, RM92m for working capital and RM8m for proposal-related expenses.
Source: CIMB Daybreak - 17 February 2015
