CGSI Research said it is keeping its FY24 to FY25 forecasts on Mah Sing unchanged.
PETALING JAYA: Mah Sing Group Bhd
is on track to register strong property sales for its financial years 2024 (FY24) to FY26, underpinned by its aggressive land acquisition strategy.
CGS International (CGSI) Research in a report noted that the property developer had announced six land acquisitions collectively worth RM650.7mil in 2024, with a potential gross development value of RM5.8bil.
“This should anchor FY24 to FY27 sales growth given Mah Sing’s rapid speed to market, in our view.
“Historically, Mah Sing has launched new projects within four to 12 months after completing land acquisitions. We also believe the group is well-positioned to surpass its FY24 sales target of RM2.5bil, having already raked in RM1.8bil in sales in the first nine months of FY24.”
Separately, the research house said Mah Sing’s DC Hub @ Southville City in Dengkil, Selangor, is still progressing despite recent setbacks.
CGSI Research noted that even in the “very unlikely worst-case scenario” where the data centre venture is called off, it said Mah Sing’s revised net asset value or RNAV/ share valuation would decline by only 7% or 23 sen after stripping off DC Hub @ Southville City.
The group’s balance sheet remained healthy with a net gearing of 0.22 times as at Sept 30.
CGSI Research said it is keeping its FY24 to FY25 forecasts on Mah Sing unchanged, but is raising its FY26 core earnings per share estimate by 2%, penciling in incremental earnings from upcoming new launches.
“We upgrade Mah Sing from ‘hold’ to ‘add’ as we believe attractive investment opportunities have emerged after the recent share price corrections. Our positive stance is also supported by resilient sales growth and a sturdy balance sheet,” it said.
