PETALING JAYA: Mah Sing Group Bhd
’s decision to dispose of 78.8 acres of its Mah Sing DC Hub @ Southville City land for RM617.9mil has been viewed positively by analysts.
The disposal, which is expected to be completed in the second half of 2027, is estimated to generate a net gain of about RM150mil, according to MBSB Research.
The research house said the gain could boost Mah Sing’s financial year 2027 (FY27) earnings by 49% and increase its dividend per share by 2.3 sen.
The research house said the move provides a strong foundation for the property developer’s long-term plans to expand its digital infrastructure exposure.
“Going forward, Mah Sing plans to develop a colocation data centre or DC within the hub through a strategic partnership with an experienced colocation operator,” it noted.
In line with that, MBSB Research said it will maintain a “buy” call on the stock with a higher target price of RM1.37 from RM1.25 previously.
It added that net gearing is likely to decline to below 0.3 times from 0.39 times in the first quarter of 2026, giving the company greater financial flexibility for land banking.
“Overall, we remain positive on its long-term prospects, supported by resilient demand for affordable homes, which should underpin earnings growth.”
RHB Research said the earnings boost from the land disposal could result in a higher dividend payout next year based on its 40% dividend payout policy.
RHB Research said this could potentially bring the FY27 dividend yield to almost 7%.
“Assuming the transaction can be completed on time, Mah Sing’s FY27 earnings would be boosted to more than RM400mil.
“We maintain our forecasts for now, pending the second quarter of financial year 2026 results slated to be released this week,” it said.
The research house pointed out that Mah Sing’s plans to monetise, develop and own income-generating digital infrastructure assets will help establish recurring income for the developer.
