21 November 2011

Mah Sing 3Q 2011 Result Summary

My own opinion:

Mah Sing is most likely to achieve more than 20c EPS this year and at least 25c EPS next year. The forward PE should be at least 7.76X, which is quite low in my memory. If I would like to hold for more than 3 years, Mah Sing definitely is one of my preferred stock. :) By the way, we can see a dilution effect from its ESOS and Convertible Bond. So, if we wish to include them in the dilution effect, the PE may be at a higher range. Nonetheless, as long as shares price is at lower range, then we will see a lower possibility the bond holder convert it to equity. :) 

Source from: Bursa Malaysia

The Group recorded strong revenue and net profit of RM1.1billion and RM127.5million for the current yearto-date. This represents 42% improvement for revenue and 47% improvement for net profit over the corresponding period in the previous year. The current quarter revenue and net profit of RM420.7million and RM43.2 million represents 48% and 46% improvement respectively over same quarter last year. Revenue and profit for the financial period is attributable to property development activities carried out in Kuala Lumpur, Klang Valley,Penang Island and Johor Bahru.

Ongoing projects that contributed to revenue and profit include Garden Residence in Cyberjaya, Kinrara Residence in Puchong, Perdana Residence2 in Selayang, M-Suites in Jalan Ampang, One Legenda and Hijauan Residence in Cheras, Icon Residence in Mont'Kiara, Kemuning Residence in Shah Alam and Aman Perdana in Meru-ShahAlam. Also contributing are commercial projects such as Southgate Commercial Centre in Sungai Besi, StarParc Point in Setapak and industrial projects, i-Parc 1 and i-Parc 3 in BukitJelutong as well as i-Parc 2 in Shah Alam. Projects in Penang Island, Residence@Southbay and Legenda@Southbay and in Johor Bahru, Sierra Perdana, Sri Pulai Perdana 2 and Austin Perdana also contributed to revenue and profit. The Plastics division continued to contribute positively to the Group's performance. With prime sites secured, the Group continuously seek to value-add on its projects through innovative marketing strategies,award winning concepts, and timely execution.

The recently announced MOU with Central Pattana, Thailand’s largest retail developer for potential joint development and management of a shopping mall within Icon City, Petaling Jaya is one example of the Group’s ability to enhance the development appeal of its projects, for greater returns to the Group and buyers of its properties.
There were no material changes to the Group’s profit before taxation for the quarter as compared to the preceding quarter ended 30 June 2011.

Explanatory Notes Pursuant to Appendix 9B of the Listing Requirements of Bursa Malaysia Securities Berhad

The Group has laid strong foundation for longer term momentum and sustainable growth, achieved via its aggressive landbanking exercises in recent years.

The proposed acquisition of 225.7acres of M Residence@Rawang freehold land in October2011 is the latest addition that will boost the Group’slandbank by a further RM948million in estimated gross development value(GDV). With 36 projects in its portfolio, the Group's unbilled locked in sales and remaining GDV is estimated at more than RM15 billion.

The remarkable sales achieved and timely execution provided steady cashflows and liquidity. The Group’s balance sheets remain healthy with net gearing ratio at 0.38 as at 30 September 2011.

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