PETALING JAYA: Mah Sing Group Bhd
’s ability to capitalise on the ongoing recovery in the property market, coupled with its strong core strength in the industry, has analysts positive on the group’s future.
Hong Leong Investment Bank (HLIB) Research said the developer has been scaling up launches while replenishing its landbank.
“Year-to-date, the group has replenished a total of RM4.1bil of gross development value, which is ahead of its yearly launches, thus reinforcing its growth visibility ahead,” it said in a report.
In addition, some of Mah Sing’s current and upcoming projects – such as M Grand Minori, new phases of M Tiara in Johor and M Cora near KLCC – are positioned in the mid-to-higher price segments.
This, HLIB Research said, signals a strategic pivot towards higher-value offerings that could gradually lift operating margins in the years ahead.
The research house maintained its “buy” call with a target price (TP) of RM1.85, noting that the group is backed by a 40% dividend policy, with a strong financial year 2025 (FY25) yield of 4.8%.
Kenanga Research maintained its “outperform” call on Mah Sing, raising its TP to RM1.78 from RM1.74.
It also added that Mah Sing has been gradually diversifying from affordable products, with the recent acquisition of Corus Hotel KL, while its expansion into the Semenyih township will help the group expand its suite of offerings.
The research house said it will maintain its FY25 earnings forecasts but will raise the FY26 forecast by 8% on the back of greater unbilled sales booked so far.
Meanwhile, CGSI International Research cut Mah Sing’s FY25 earnings per share (EPS) by 6%, but raise FY26 and FY27 EPS forecasts by 9% and 13%, respectively, reflecting updated progress billing assumptions, incremental earnings from new landbank and higher blended profit margins.
It noted that the developer’s stock offers compelling value, trading at seven times its FY26 price-to-earnings ratio.
“We believe its current valuation reflects minimal expectations for its data centre (DC) segment, which limits downside risk related to DC.
“Downside risks include delays in new project launches and a pullback in housing demand. We reiterate ‘add’ with a higher TP of RM1.80” it said.
