Instant Comment RHB says Mah Sing results in line, upgrades stock

by **Cals** Sat 01 Mar 2014, 01:41

Instant Comment RHB says Mah Sing results in line, upgrades stock

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Friday, 28 February 2014 17:10

KUALA LUMPUR (Feb 28): RHB Research Institute said the just-released earnings of Mah Sing Group Bhd were in line with expectations.

The research house has upgraded the stock to “buy” from “neutral” as it expects the company to post higher earnings this year.

But it keeps its fair value of the stock at RM2.44.

At 4.50 pm, Mah Sing share rose 1 sen to RM2.07.

At noon today, Mah Sing Group reported a 28% growth in fourth quarter net profit from a year earlier as revenue rose.

The property group said net profit grew to RM70.7 million in the fourth quarter ended December 31, 2013. Revenue was higher at RM570.2 million compared with RM441.4 million.

Full-year net profit rose to RM280.6 million from RM230.6 million a year earlier. Revenue climbed to RM2.01 billion from RM1.78 billion.

Mah Sing has proposed a first and final single-tier dividend of eight sen a share.

Mah Sing also said the group had increased its unbilled sales to a record high of RM4.4 billion, after achieving its targeted RM3 billion sales during the year.

“Earnings Intact. Mah Sing’s 4Q13 results were in line with expectations. FY13 sales met management’s and our MYR3bn target but, while the company did not indicate its official FY14 sales target, we expect the same amount to be repeated,” said RHB’s analyst Loong Kok Wen in a note.

“Four months after the 2014 Budget announcement, we believe the current valuations have largely priced in the negative impact of the cooling measures. Therefore, we upgrade Mah Sing to BUY,” she said.

When asked by theedgemalaysia.com whether she sees earnings of Mah Sing for this year to be higher than 2013, she said: “Yes, because of the high unbilled sales.”