Mahsing
We are raising our FY10-12 EPS forecasts by 1-13% in view of the spectacular sales performance in 1Q, which has raised the group’s unbilled sales to a whopping RM1.1bn. We maintain our BUY recommendation while raising our target price from a bonus-adjusted RM2.17 to RM2.30, based on an unchanged 10% discount to our target market P/E of 15x. Potential catalysts include
1) newsflow on continued landbanking exercises,
2) strong sales and accelerating earnings growth.
UMland
We retain our earnings forecasts as we consider the results to be in line because 1Q profits were boosted by lumpy sales from Suasana Bangsar. Earnings should be sustained in 2H as the group will launch two niche projects and recognise around RM8m land sale gains. We are tweaking our FY10-11 EPS up by around 1% and FY12 down by 3% for housekeeping adjustments. Although the absence of a dividend for 1Q was disappointing, we are keeping our full-year DPS forecast of 6.5 sen as we believe the group can make up for the shortfall in future quarters. We maintain our BUY recommendation and RM2.11 target price, which we continue to base on a 50% discount to RNAV. Potential re-rating catalysts include
1) further land acquisitions and
2) the good response to its two new projects.
2) the good response to its two new projects.