Profile of MahsingMah Sing is an established developer with strong cash balances, low gearing, solid management and good track record. Mahsing is one of very few property stocks which survived the 1997-1998 Asia Econony Recession. Currently, Mahsing has 14 projects spread across the Klang Valley, Kuala Lumpur, Penang and Johor Baru. Recently, Mahsing has been awarded 'Best Development Malaysia' Award at the 13th International Property Award 2007 in association with CNBC in London for its Damansara Legenda project in Petaling Jaya.
Opportunity
According to a source, Abu Dhabi and Kuwait investors are eyeing a strategic stake in Mahsing to complete part of the Middle East - Southeast Asia property value chain. Based on closing price at 1.71 on 12 Nov 2007, Mah Sing has been trading at 9 times and 7 times for financial year 2008 and 2009 respectively. Mahsing is also reported to be trading at a deep 40 per cent discount to its revised net asset value of RM2.86 as estimated by Macquarie Research. CIMB (target price of RM3.00), Aseambankers (target price of RM3.00), Deutsche Bank (target price of RM3.02) and SJ Securities (target price of RM3.15) have all placed a buy on Mah Sing stock. Besides, the company which has declared 40 percent of its net profit will be given back to shareholders in terms of dividends for financial year 2007. The group's market capitalisation has doubled to over RM1billion to date from RM511 million as at end 2006.
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