Kenanga cuts Mah Sing target price
KUALA LUMPUR, May 22 — Kenanga Research cut its target price for property developer Mah Sing Group to RM2.00 from RM2.18 on an outlook for higher net gearing after acquiring more landbank.
Kenanga said it was neutral on Mah Sing’s recent RM333.2 million acquisition of 412.4 acres of land on the outskirts of Kuala Lumpur.
“Although the 0.6x net gearing is manageable and is expected to fall below 0.5x over the next two quarterson the back of continuous billings, we prefer developers to keep their net gearing ratios below 0.5x, particularly in the current global uncertainties,” Kenang said in a note to clients.
As of 0221 GMT, Mah Sing’s shares rose 4.8 per cent, underperforming the Malaysian benchmark stock index. which rose 0.40 per cent. — Reuters