PETALING JAYA: Analysts are maintaining a positive outlook for Mah Sing Group Bhd
following the announcement of its joint venture (JV) with KLK Land Sdn Bhd to acquire and develop 419.15 acres of freehold industrial land in Kulai, Johor.
The land acquisition, within the Johor–Singapore Special Economic Zone (JS-SEZ), is expected to be completed in the second half of financial year 2026 (2H26).
The site will be developed into MS Industrial Park @ Kulai, a large-scale integrated industrial park targeting advanced manufacturing, logistics, warehouses and data centres.
TA Research said the deal demonstrates a selective and disciplined capital allocation approach, with the project’s JS-SEZ positioning, attractive entry cost, scale and phased eight to 10-year development profile bolstering the company’s long-term earnings potential.
“The MS Industrial Park @ Kulai acquisition reflects a recalibration of Mah Sing’s industrial expansion strategy, anchoring future growth within the JS-SEZ, where scale, infrastructure support and demand visibility are stronger,” the research house said.
The land was acquired for RM274mil, which translates to an implied land cost of about RM15 per sq ft and a land cost-to-gross development value (GDV) ratio of around 12%, based on the project’s estimated GDV of RM2.26bil.
TA Research said the RM15 per sq ft acquisition price is compelling.
“Coupled with a low land cost-to-GDV ratio of about 12%, the acquisition provides a meaningful margin buffer and competitive pricing flexibility over the development cycle, mitigating construction cost risks and supporting long-term profitability,” it said.
Post-acquisition, Mah Sing’s total landbank will expand to 2,761 acres with a remaining GDV of RM31.1bil.
“With net gearing of 0.25 times and cash holdings of RM1.17bil as at end-September, the group retains ample financial flexibility to pursue further value-accretive opportunities while sustaining growth momentum.”
The research house maintained its “buy” call on the company with an unchanged target price of RM1.72 a share.
