PETALING JAYA: Property developer Mah Sing Group Bhd
’s outlook is anchored on earnings visibility from strong unbilled sales of affordable homes under the “M” series and potential monetisation of landbank for data centres (DCs).
Analysts remained optimistic of the company’s performance following its first quarter ended March 31, 2026 (1Q26) results that came within market expectations.
As such, Kenanga Research maintained its “market outperform” call on the stock with a higher target price (TP) of RM1.82 from RM1.78.
The research house noted Mah Sing’s plans to form a joint venture to monetise its DC landbank while also pointing to the strong earnings stability through affordable housing and effective land banking management.
The company’s landbank stood at 1,086ha with a combined gross development value of RM29.9bil.
BIMB Research, which maintained a “buy” call and unchanged TP of RM1.85 on the stock, said medium-term upside could come from MS Industrial Park @ Kulai, the Corus Hotel premium redevelopment and potential DC land monetisation.
The company had bought the Corus Hotel in Kuala Lumpur for RM260mil last August.
“Margins should remain resilient despite construction cost pressure, supported by early contractor awards, value engineering, phased pricing and built in cost buffers, although sustainability of the 1Q26 margin uplift remains a key monitorable,” it said.
BIMB Research added that the company’s active landbanking strategy also provides medium term earnings visibility, while its strong balance sheet (with RM1bil cash) as well as 0.39 times net gearing allows it to pursue selective acquisitions without compromising its dividend payout.
CIMB Research tempered its optimism with caution, maintaining a “buy” call with a lower TP of RM1.55 from RM1.73 after factoring in rising diesel and building costs amid the ongoing Middle East conflict.
“Strategically, upcoming industrial projects (MS Industrial @ Kulai) and premium developments (Corus Hotel site, Jalan Ampang) signal gradual diversification beyond its core M Series segment,” it said.
CIMB Research trimmed the company’s core net profit forecasts for the financial year ending Dec 31, 2026 (FY26) to FY28 by 4%, 6% and 6% to RM265mil, RM275mil and RM295mil respectively.
It said that at current 99 sen price levels, the shares trade at a steep 60% discount to its revised net asset value anchored by RM3.3bil in unbilled sales as of March 31, 2026 and attractive FY26 to FY27 dividend yields of 5.3%.
Meanwhile, MBSB Research also maintained a “buy” call on the stock with an unchanged TP of RM1.25.
