KUALA LUMPUR: CIMB Research has highlighted Mah Sing Group Bhd as among the best bargains in the property sector that investors can pick up due to it being an excellent proxy to the property market.
Among the larger-cap developers, Mah Sing is the only pure Malaysian property developer, with exposure to the major property hotspots of Klang Valley, Johor, Penang and Sabah.
“The group has no exposure to property investments or development overseas and has no intention of expanding abroad,” CIMB head of research Terrence Wong said in a report yesterday. Wong noted that the upcoming employee share option scheme (ESOS) expiring in mid-July should enhance its share liquidity and could provide investors with a good entry point.
“Investors with a higher risk appetite may consider Mah Sing warrants that expire in March 2018 with an exercise price of RM1.98.” Wong, in his report, said from April 22 to last Thursday, CIMB Research took Mah Sing’s management on a non-deal roadshow (NDR) to meet European and American investors.
“We sensed a great change in the European investors’ level of interest and knowledge compared to our trip in July 2013,” he said. He, however, said Mah Sing was new to many American investors and more time was needed for introduction. “Overall, we were pleasantly suprised by the level of interest exhibited by both European and American investors,” he added.
Mah Sing’s consistent and strong strong sales, earnings growth and dividend track record, as well as its relatively low price earnings, are key attractions. CIMB Research is maintaining its “add” rating on Mah Sing, with an unchanged target price of RM3.03.
By BUSINESS TIMES
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