PETALING JAYA: CIMB Research has maintained its “buy” call on Mah Sing Group Bhd
, stating that the property company has a strong track record in Johor’s property market, where it has completed RM4.5bil residential and industrial developments.
Its sizeable RM11.6bil Johor development pipeline includes M Grand Minori, Meridin East, M Tiara 2, and Tiara Hills.
It said with 1,463 acres or 55% of remaining land bank in Johor, it believes Mah Sing is well positioned to capitalise on structural growth opportunities arising from the Johor-Singapore Special Economic Zone (JS-SEZ) and Rapid Transit System Link.
“We reiterate our ‘buy’ call on Mah Sing, as the stock is trading at a deep 60% discount to its revalued net asset value, offering compelling financial year 2026 (FY26) to FY28 dividend yields of 5.4% to 5.7%.”
It said Mah Sing’s 419.2-acre Kulai land acquisition had secured resounding shareholder approval, paving the way for the development of the RM2.3bil MS Industrial Park @ Kulai (via a 60:40 joint venture between Mah Sing and Kuala Lumpur Kepong Bhd).
“The group’s industrial push diversifies its residential-heavy sales mix (industrial contribution target: 20% to 30%) with the first phase of ready-built factories to be launched in fourth quarter of FY26,” it added.
The research house said it also “took note” of Mah Sing’s proactive steps to manage higher costs and navigate an uncertain economic outlook that could weigh on new launches.
The fully sold M Zenya project – the group’s fourth residential development in Kepong – has topped out and is on track for completion 13 months ahead of schedule, it said, noting that this marks the second accelerated development after M Astra, highlighting the group’s commitment to cost discipline and timely delivery.
MS Industrial Park @ Kulai also diversifies the group’s residential-heavy sales mix, with industrial contributions anticipated to grow to 20% to 30%, it said.
“Mah Sing’s 419.2-acre Kulai land acquisition received near-unanimous shareholder approval, paving the way for the development of the RM2.3bil MS Industrial Park @ Kulai,” it noted.
“Featuring close connectivity to Senai International Airport, Port of Tanjung Pelepas, and Johor Port through major highways, MS Industrial Park @ Kulai is well positioned to attract advanced manufacturing industrialists operating in sectors including electrical and electronics; food and beverage; maintenance, repair, and overhaul; semiconductors; pharmaceuticals; and artificial intelligence.”
At last look, the stock was at RM1.01.
