Research Firms Optimistic About Mah Sing's Growth Potential
KUALA LUMPUR, Dec 20 (Bernama) -- MIDF Amanah Investment Bank Bhd remained upbeat on the prospect for real estate development company Mah Sing Group Bhd, driven by its growing exposure to the booming Johor property market.
The investment bank noted that Mah Sing’s new property sales are expected to remain robust due to strong demand for affordable residential projects.
In a note today, the bank shared that Mah Sing had recently acquired two parcels of freehold land in Taman Pelangi, Johor Bahru, totalling 2.42 hectares for RM156.8 million.
The land acquisition is expected to be completed in the first half of 2025 (1H FY2025), marking the company’s third Johor land acquisition of Mah Sing in 2024.
The newly acquired land will be developed into M Grand Minori, a high-rise residential serviced apartment project with a gross development value (GDV) of RM1.5 billion.
Earlier this year, Mah Sing acquired 40.63 hectares of land in Mukim Pulai in April and 23.92 hectares of land in Mukim Pulai in December.
"We view the land acquisition positively due to its strategic location. The latest land acquisition will further strengthen Mah Sing’s presence in Johor," it said.
MIDF maintained a 'buy' recommendation for the company with a revised target price (TP) to TM2.08 from RM2.04.
Similarly, Hong Leong Investment Bank (HLIB) reiterated its 'buy' call for Mah Sing with an unchanged TP of RM2.05.
The bank highlighted that Mah Sing’s total landbank now stands at 976.10 hectares, with an estimated GDV of RM31.31 billion following this latest acquisition.
"Despite its foray into the data centre space, Mah Sing has demonstrated a strong commitment to its core property development business, as evidenced by its strategic landbank replenishment and strong sales performance this year.
"This balanced approach highlights the group’s ability to diversify while staying focused on its proven strengths," said HLIB.
As of 11.16 am, Mah Sing’s share price increased 2.0 sen to RM1.78 with 1.87 million shares traded.
-- BERNAMA
