PETALING JAYA: Mah Sing Group Bhd
’s shares are on track for a strong rebound in 2026 after last year’s sell-down was “overdone”, according to TA Research.
The property developer is TA Research’s top pick for 2026 as valuation has de-rated excessively, trading below historical and peer averages.
In a note to clients, the research house said that Mah Sing’s core fundamentals were intact, with sales for the financial year 2025 (FY25) on track to hit RM2.65bil.
Meanwhile, unbilled sales are at RM3.14bil, or an eight-year high, supporting earnings going into 2026.
“The risk-reward profile is compelling,” stated TA Research.
Mah Sing experienced a sharp sell-down in 2025, with the share price retracing about 46% from its yearly high.
The correction was driven largely by sentiment surrounding the Bridge Data Centre collaboration and global artificial intelligence (AI)-chip restrictions.
For context, last October, Mah Sing’s exclusive talks with Bridge Data Centres lapsed.
Following this, Mah Sing said it was on the lookout for new partners.
This is the second data centre project collaboration with Bridge Data Centres to have fallen through, after an earlier agreement for a 100MW data centre project on a 17.55-acre site in Southville City.
“In our view, this fear-driven de-rating has materially disconnected the share price from underlying fundamentals.
“At 96.5 sen, we believe Mah Sing’s fundamentals are over-discounted, creating an attractive asymmetric risk-reward entry point.
“With downside risks largely priced in, our top pick conviction is anchored by intact core earnings visibility and structural exposure to Malaysia’s next growth phase, spanning infrastructure, the digital economy and manufacturing-led industrialisation,” stated the research house.
TA Research added that the emergence of DeepSeek AI in early 2025, which demonstrated lower-cost AI model training, tighter US AI-chip export restrictions and heightened scrutiny of Malaysia’s role as a regional data-centre hub had left Mah Sing’s shares significantly undervalued.
Mah Sing’s positive outlook, nonetheless, showcased the group is set to meet its RM2.65bil sales target, backed by the 72% of full-year sales recorded from the first nine months of FY25.
TA Research projected the property developer to recover strongly, supported by robust core earnings visibility and structural growth from Malaysia’s infrastructure, digital economy and manufacturing sectors.
The research firm maintained its “buy” rating with a target price (TP) of RM1.72, indicating 78% upside from the current share price of RM0.97.
It raised the final TP from a one-times price-to-book multiple applied to Mah Sing’s forecast 2026 book value per share, plus a 3% environmental, social and governance or ESG premium for its sustainable practices.
TA Research highlighted the group has strong momentum to sustain its capital-intensive investment plans, without any significant strain on cash assets.
It noted unbilled sales of RM3.14bil from 2025 that will deliver clear forward earnings certainty into 2026.
The research house also said Mah Sing’s core business fundamentals remained solid, with robust earnings visibility, low gearing (0.25 times) and RM1.17bil cash reserves, providing substantial headroom to finance developments, land acquisitions and sustained dividends.
The research house highlighted Mah Sing’s landbank is strategically aligned to key projects like M Grand Minori near the Johor Baru-Singapore RTS and the M Cora near the upcoming Penang LRT.
Hence, the group is well-positioned to capitalise on major transit-oriented developments or TODs.
It said, “As these projects reach key milestones, improved connectivity is expected to support buyer sentiment, pricing and inventory turnover, underpinning sustainable residential demand.”
On the manufacturing front, the group is expanding into the industrial property segment through manufacturing re-shoring.
“Mah Sing’s joint venture with KLK Land in Kulai, Johor, strengthens its exposure to manufacturing-led industrial growth within the Johor-Singapore economic corridor,” TA Research said in a note to clients.
Additionally, the development of MS Industrial Park@Kulai (first launch in 2027) will offer a scalable platform for earnings diversification into advanced manufacturing, logistics, warehousing and data centres, amid regional supply chain reconfiguration.
TA Research also indicated management retains exposure to Malaysia’s digital economy through data centres, but as a flexible option rather than a core commitment.
“Management is evaluating outright land sales or selective build-to-lease or BTL structures, depending on risk-return dynamics,” it said.
