The investment bank highlighted in its research note that Mah Sing is planning for seven property launches in the latter half of this year, emphasising that 72% of its M Series projects are priced below RM500,000, making them attractive in the current market.

“Meanwhile, Mah Sing is looking to expand its product range to mid-high or high-end markets, as demand for higher-end properties is growing amid an improving outlook for the property sector,” MIDF said.

Additionally, MIDF said Mah Sing is enhancing its industrial portfolio by establishing the MSS Business Park in Sepang, responding to rising demand for industrial properties in Malaysia.

Mah Sing has allocated 607.43 hectares of land in Southville City, Bangi, Selangor for its data centre (DC) hub.

“The diversification into DC aims to increase Mah Sing’s recurring income.

“Mah Sing is expected to hold approximately a 20% stake in the DC collaboration, with estimated earnings contributions of RM25 million per annum from FY2026 onwards,” MIDF added.

MIDF maintained Mah Sing’s earnings forecast for FY2024/FY2025 but adjusted the FY2026 forecast upwards by 6.4% to reflect contributions from the DC venture with Bridge Data Centres, a company primarily owned by Bain Capital.

“We have revised our target price (TP) for Mah Sing to RM1.94, up from RM1.83 previously,” it said.

Meanwhile, RHB Investment Bank Bhd maintained its “buy” rating on Mah Sing, raising its TP to RM2.26 from RM2, citing a 35% upside potential and a 3% yield.

“With Mah Sing securing its 500-megawatt power allocation last week, we expect this supply certainty to significantly enhance the value of Mah Sing DC hub @ Southville City.

“This development is likely to attract other DC operators, prompting us to increase our TP to reflect the higher value of the DC hub land,” it said.

At 10.13am, Mah Sing’s shares rose two sen to RM1.69, with trading volume reaching 9.52 million shares.