MIDF Amanah Investment Bank Bhd (MIDF Research) viewed positively Mah Sing Group Bhd's third land acquisition in Johor for 2024 due to its strategic location.

Furthermore, MIDF Research said the latest land acquisition will further strengthen Mah Sing's presence in Johor, hence, the research house has maintained its BUY recommendation for the property developer.

On Dec 19, it was reported that Mah Sing's wholly owned subsidiary Dsara Sentral Sdn Bhd is acquiring two parcels of freehold land in Taman Pelangi, Johor Bahru, from SP Setia Bhd's subsidiary Pelangi Sdn Bhd for RM156.8 million, which will be funded via a combination of internally generated funds and bank borrowings. The land acquisition is expected to be completed in the first half of 2025.

Mah Sing said the acquisition is for the planned development of premium serviced apartments and retail units with an estimated gross development value of approximately RM1.5 billion. The group said the project is set to attract the interest of local and international buyers due to its proximity to Bukit Chagar RTS Station.

All in all, while MIDF Research has maintained Mah Sing's earnings forecast for FY24F-FY26F, it has revised upward the group's target price to RM2.08 from RM2.04 previously as the research house remains upbeat about Mah Sing's prospect that will be driven by the growing exposure to the booming Johor property market.