29 September 2012

Mah Sing - Malaysia Shares

I bought Mah Sing recently after it fall below RM2.00 per shares. Reasons being:
  1. With potential 15c dividend (before tax), it is converted to 7.5% dividend yield, which is considered quite attractive. 
  2. Mah Sing planned to launch around RM50B project next year, which I believe could hit about RM30B - RM40B orders next year. 
  3. Mah Sing is second largest Malaysia developers in term of Revenue Generation, just behind SP Setia. With SP Setia now controlled by PNB, Mah Sing is likely to emerge to another favorite of foreign investors. 
  4. Mah Sing forward PE 2013 could be around RM300M, which implies to 5x to 6x PE. It is considered as low PE since I invested long time ago. 
But what could cause Mah Sing to fall in shares price? 
  1. Malaysia government announced to curb the property speculation by rising the RPGT to 15% within 2 years or 10% within 5 years. 
  2. Property stocks suffered from huge volatility during pre-election and post-election period. This is part of the politic risk. 
  3. Market sentiment becomes weaker after the global economy becomes uncertain again, due to recent Spain sovereign bond rate became 6% and above. 
Attached is the recent share price of Mah Sing:

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