MIDF Research views the latest land acquisition positively, as it will strengthen Mah Sing’s presence in Johor.
PETALING JAYA: Property developer Mah Sing Group Bhd
’s acquisition of 24ha of freehold land in Pulai, Johor, has received a positive reception in the market as the company strives to leverage on housing demand in the area.
The company had purchased 30.63ha for M Tiara 1 in June 2023 and 40.63ha for M Tiara 2 last April in the same area. The recent announcement signifies the fifth land deal for the company this year.
UOB Kay Hian Research, which has maintained a “buy” call with an unchanged target price (TP) of RM2.29 a share on the stock, viewed the acquisition price of RM24.46 per sq ft as “a good deal”, reflecting a land-cost-to-gross development value (GDV) ratio of 13.6%, in line with Mah Sing’s earlier M Tiara deals of around RM25 per sq ft.
“We like Mah Sing for its multiple growth catalysts. First, the company’s swift turnaround property business has enabled it to convert parcels of land into affordable housing products with attractive pricing, targeting a more resilient market segment.
“Second, we believe the data centre venture will not only unlock immediate value for idle land in Southville City but also strengthen its recurring income base.
“Third, the plastic manufacturing business is expanding, with plans for an initial public offering within the next three years. Lastly, Mah Sing’s glove business is showing signs of improvement, with profitability targeted for second-half 2025,” it added.
Meanwhile, MIDF Research views the latest land acquisition positively, as it will strengthen Mah Sing’s presence in Johor, while noting that the company has a few ongoing projects in Johor, namely, Meridin East, M Minori and M Tiara.
The research house said M Tiara 3 would be a continuation of M Tiara 2, with a proposed development of super-lined homes with indicative selling price starting from RM780,000, offering larger landed residential units and GDV of RM463mil.
It has maintained a “buy” call with a revised TP of RM2.04 a share from RM2.03 previously.
BIMB Securities said Mah Sing’s new land acquisition presented a prime opportunity for regional expansion, capitalising on the spillover demand from the successful M Tiara project, which recorded over 14,000 registrations and a 100% take-up rate for international lots.
