PETALING JAYA: Mah Sing Group Bhd
’s manufacturing business has had a turnaround supported by stronger sales volume, which resulted in higher plant utilisation rates, as well as average selling price (ASP) adjustments to reflect increased raw material costs.
In a report, RHB Research said although the segment posted a lower revenue due to the sale of its automotive business last year, the company still registered a profit of RM11.24mil in earnings before tax and interest.
As for its property segment, the group’s revenue was mainly driven by higher sales and progress billings from ongoing projects after the first quarter was impacted by festivities and shorter working months.
“The first half of 2026 (1H26) property sales amounted to RM1.32bil – on track to meet management’s RM2.76bil target for the year.
“We expect Mah Sing to acquire a few more land parcels to replenish its M-series projects in the coming months,” RHB Research said.
Mah Sing launched projects with a gross development value (GDV) of RM1.78bil in 1H26 and has another RM1.7bil in GDV launches in its pipeline.
These include M Hana in Puchong, M Mira in Setapak, M Cora in Penang, M Tiara 2 in Johor Baru, as well as new phases of existing projects.
MS Industrial Park @ Kulai is also slated to be launched by end-2026.
On the group’s glove business, RHB Research pointed out that the strong recovery in the second quarter was in line with its peers, but noted the company’s margin advantage will gradually narrow due to the recent fall in glove ASPs and rising natural gas costs.
The research outfit added that it will maintain a “buy” call on the stock with a target price (TP) of RM1.41.
Moreover, TA Research said that Mah Sing’s 1H26 core net profit of RM135.3mil came in within expectations, accounting for 50.8% of its full-year forecast and 47.2% of consensus’ estimates.
Notably, the company’s net profit for the second quarter was reported at RM67.4mil.
In addition to that, Mah Sing is confident in achieving its financial year of 2026 or FY26 sales target of RM2.7bil, as sales remain healthy by strong take-ups of M Aria, M Aurora and M Amaya.
On margins, TA Research said it expects the quarterly compression to normalise as this was mainly due to higher selling, marketing and administrative expenses from the company’s new launches.
“Cost contingencies continue to be factored into project budgeting to manage construction cost volatility,” the research house added.
With that, the research house said it will make no changes to its earnings forecasts, maintaining a “buy” call on Mah Sing with a TP of RM1.41.
Meanwhile, Kenanga Research said it projects Mah Sing’s 2H26 to be profitable as well, and raised its FY26 earnings forecasts by 7%.
It said supporting this was the acquisition of 14.4 acres of land in Ampang for a serviced apartment development with an estimated GDV of RM1.92bil.
“This implies a RM133mil GDV per acre, which is higher than the average of the group’s existing projects.
“We hold reservations on this as we continue to monitor the development of the planned project,” it noted.
Kenanga Research also said it will maintain an “outperform” call on the stock with a TP of RM1.82.
The research firm noted that the risks involved include persistent overhang in the high-rise segment, widening losses at its glove division due to persistent oversupply, and sustained elevated inflation and mortgage rates, hurting affordability.
