MIDF Amanah Investment Bank Bhd (MIDF Research) has maintained a BUY call on Mah Sing Group Bhd, with an unchanged target price of RM2.04, citing positive prospects for its affordable residential projects in the Klang Valley. The visit to M Aspira in Taman Desa highlighted the company's quick turnaround strategy and strong buying interest, which is expected to drive new sales growth.
The M Aspira project, launched in November 2024, is part of Mah Sing's M-series and underscores its swift project development capabilities. The project came just four months after the company acquired 6.17 acres of land in Taman Desa for RM108 million. M Aspira, together with Residensi Madani on the same land, has a combined gross development value (GDV) of RM1.01 billion. Residensi Madani offers 800 units with a starting price of RM200,000 for an 800-square-foot build-up, while M Aspira includes 1,600 units across two towers, with sizes ranging from 708 to 1,011 square feet and prices starting at RM448,000.
Demand for M Aspira has been robust, with over 3,000 registrations of interest, attributed to its strategic location approximately 5 kilometres from Mid Valley. The project's connectivity and accessibility are further enhanced by the planned construction of new links to the KL-Seremban Expressway and a dedicated access road exclusively connecting M Aspira to the expressway. This accessibility is expected to bolster the project's appeal and drive a strong take-up rate.
MIDF Research remains optimistic about Mah Sing's quick turnaround strategy, noting that it effectively improves the company's cash flow and balance sheet. The focus on affordable residential projects, particularly in high-demand areas like the Klang Valley, is anticipated to continue supporting Mah Sing's sales performance. No changes were made to the earnings forecasts for FY24, FY25, or FY26.
With a target price of RM2.04, based on a 13% discount to the revalued net asset value (RNAV), MIDF Research maintains its positive outlook for Mah Sing, projecting a total return of 18.7% driven by the share price return and dividend yield.
