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Wednesday, August 01, 2012

Mahsing- an attractive property stock

Mahsing broke above its intermediate downtrend line at RM2.15 about three days ago. Its next resistance levels are RM2.30 & RM2.45 (the latter is a very strong resistance).


Chart 1: Mahsing's daily chart as at August 1, 2012_12.00pm (Source: Quickcharts)

The bullish breakout could signal the beginning of the next upleg for this stock. From Chart 2, we can see that the stock is in a long-term uptrend, with support at RM1.80-2.00.


Chart 2: Mahsing's weekly chart as at July 31, 2012(Source: Tradesignum)

Mahsing is a medium-size property developer, which made a net profit of RM168 million on revenue of RM1.57 billion for FYE31/1/2/2011. For 1Q2012 ended 31/3/2012, its net profit was RM60 million on revenue of RM458 million. Based on the annualized EPS of 28.8 sen, Mahsing (at RM2.28) is now trading at a PE of 8 times. At this PE, Mahsing is deemed fairly attractive.

Based on technical breakout, fairly attractive valuation & satisfactory financial performance, Mahsing could be a good stock for medium-term investment.

5 comments:

Unknown said...

Alex, can you post an another better stock, mudajaya ?!

Alex Lu said...

HI Unknown

Mudajaya (at RM2.57) has its appeal. It is fairly attractive as it is trading at a PE of 4.9 times (based on last 4 quarters' EPS of 52 sen). It is also involved in the construction of power plant- a sector that will enjoy some activities in the next few years, both in Malaysia or in India (where it has a presence).

However, the stock- once a darling among fund managers- is still struggling get into the good books of fund managers. It is still in an intermediate downtrend line, with resistance at RM2.80. Until a breakout happens, the stock will underperform. Meanwhile, its next support is at the horizontal line at RM2.40.

Chyi said...

Hello Alex, why Mudajaya still struggling to get into books of fund managers? Is it because of the issue in India, isn't it? But it looks like CIL will finalize the coal deal with them soon.

Ray Khor said...

Hi Alex,

I must say you have some unique and interesting insights and it is very helpful. I've been gradually accumulating PAVREIT of late. What do you think is the fair value of this stock? Thank you!

Ray

Alex Lu said...

Hi Ray Khor

The chart of PAVREIT looks very nice. It is in an uptrend line, with support at RM1.23-1.27. If this support holds, you can add to your position.