MTAG to buy 7.5ha land in Johor Bahru for RM53.6 mil to expand industrial footprint

KUALA LUMPUR (Jan 31): MTAG Group Bhd (KL:MTAG) has proposed to acquire a parcel of 7.54-hectare vacant land in Johor Bahru for RM53.58 million in cash, to boost its manufacturing capabilities and production capacity.

About one-third of the freehold land will be used for its own manufacturing and operational needs, and the remainder may be retained for future development or rental, the Johor-based printing and manufacturing group said in a bourse filing on Friday.

The land is currently zoned for residential use, and MTAG intends to apply for conversion to industrial use upon completion of the acquisition.

“In the event that the group is unable to obtain the requisite approvals for such conversion, the group will not be able to proceed with the intended development, which may in turn adversely affect the group’s operational consolidation and expansion plans,” MTAG said.

The group said the acquisition of the land from Grand Focus Sdn Bhd supports its strategy to move up the value chain by enhancing production capabilities through greater automation and upgraded converting technology.

It added that it will use internally generated funds to finance the acquisition, which is expected to be completed in the second half of 2026.

According to AskEdge, MTAG shows trailing 12-month earnings before interest tax depreciation and amortisation margins of 18.2%, coupled with a 5.4% return on equity.

MTAG’s share price closed half a sen or 2.13% higher at 24 sen, giving the group a market capitalisation of RM164 million. Over the past one year, the stock has fallen 23% from 31 sen.

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