Mah Sing a 'paid-to-wait' play, trading at 60% below book value — CIMB Securities

KUALA LUMPUR (July 29): CIMB Securities said Mah Sing Group Bhd (KL:MAHSING) offers a compelling “paid-to-wait” exposure to Johor with decent dividend yields while stock trades at a steep 60% discount to its book value.

"With 1,463 acres or 55% of remaining land bank in Johor, we believe Mah Sing is well positioned to capitalise on structural growth opportunities arising from the Johor-Singapore Special Economic Zone and Rapid Transit System Link," the house said in a note on Wednesday.

It kept its "buy" recommendation on the stock, with a target price of RM1.55. Mah Sing gained one sen or 1% to RM1.01, valuing the group at RM2.59 billion at the time of writing.

CIMB Securities noted Mah Sing has a strong track record in Johor’s property market, where it has completed RM4.5 billion residential and industrial developments. Its sizeable RM11.6 billion Johor development pipeline includes M Grand Minori, Meridin East, M Tiara 2, and Tiara Hills.

"We take note of Mah Sing’s proactive steps to manage higher costs and navigate an uncertain economic outlook that could weigh on new launches," it added.

The fully sold M Zenya project — the group’s fourth residential development in Kepong — has topped out and is on track for completion 13 months ahead of schedule.

This marks the second accelerated development after M Astra (January 2026), highlighting the group’s commitment to cost discipline and timely delivery.

MS Industrial Park @ Kulai also diversifies the group’s residential-heavy sales mix, with industrial contributions anticipated to grow to 20%–30%. 

On July 22, 99.9% of Mah Sing’s shareholders voted in support for its latest acquisition — the 419.2-acre Kulai land which is to be developed as MS Industrial Park at Kulai under a 60:40 joint venture with KLK MK. 

The project’s gross development value (GDV) is set to be RM 2.3 billion, with supportive state government approval.

The land will be acquired from KLK’s wholly owned unit Aura Muhibah Sdn Bhd for RM273.9 million, setting a reasonable land-cost-to-GDV of 12%. 

The Industrial park is well positioned to attract advanced manufacturing industrialists operating in sectors such as electrical and electronics, food and beverage (F&B), repair, overhaul, semiconductors, maintenance and artificial intelligence (AI). It is also within close connectivity to Senai International Airport, Johor port through major highways, and Port of Tanjung Pelepas.

The first phase of ready-built factories is set to launch in 4Q2026, while the entire five phase development spans six- to eight years.

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