MAHSING: S&P recommended Buy - Target 3.83
MS’ 3Q06 financial results were within expectations. 9M06 net profit reached MYR48.2 mln, accounting for 74% of our 2006 forecast. For the quarter, progress billings were underpinned by ongoing projects such as Aman Perdana in Meru-Shah Alam and Austin
Perdana in Johor Bahru.
Property development EBIT margin remained healthy at 26% in 3Q versus 21% in 2Q. We believe the level of profit margin is sustainable given MS’ focus on mid- to high-end residential products in relatively good locations. Unbilled sales grew 18% QoQ to MYR431 mln as at
Sep. 2006, which is commendable in view of a generally subdued property market.
The Board of MS has approved the following corporate exercises: (1) private placement of up to 10% of existing share capital with an expected completion date in Jan. 2007, (2) 1-for-4 rights issue exercise to be completed in June 2007 and (3) 1-for-5 bonus issue to be completed in July 2007. We understand the bulk of the money (~MYR134 mln) raised will be used as working capital for various new projects.
Perdana in Johor Bahru.
Property development EBIT margin remained healthy at 26% in 3Q versus 21% in 2Q. We believe the level of profit margin is sustainable given MS’ focus on mid- to high-end residential products in relatively good locations. Unbilled sales grew 18% QoQ to MYR431 mln as at
Sep. 2006, which is commendable in view of a generally subdued property market.
The Board of MS has approved the following corporate exercises: (1) private placement of up to 10% of existing share capital with an expected completion date in Jan. 2007, (2) 1-for-4 rights issue exercise to be completed in June 2007 and (3) 1-for-5 bonus issue to be completed in July 2007. We understand the bulk of the money (~MYR134 mln) raised will be used as working capital for various new projects.
Full Report: S&P
posted by Tauke Saham @ 10:37 AM
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