Mah Sing Group Berhad (Mah Sing) is expanding its presence as it launched M Zenya (GDV: RM550m) which is Mah Sing’s 4th project in Kepong.
Previous projects that were completed in Kepong include Lakeville Residence (GDV: RM1.5b) and Residensi Seri Wahyu (GDV: RM200m) which were completed in 2020.
Meanwhile, there are two ongoing projects in Kepong which are M Luna (GDV: RM705m) and M Nova (GDV: RM790m). M Luna is scheduled for completion in 3QCY24 while M Nova is targeted to be completed in 2028.
MIDF Research today (May 10), said they maintain a BUY call with an unchanged TP of RM1.42 for Mah Sing and make no changes to their earnings forecast for FY24F/25F/26F. MIDF also maintains their BUY call on Mah Sing as they remain sanguine on long term outlook for Mah Sing on the back of its strong exposure to affordable residential segment. Besides, its growing industrial properties segment will further drive earnings growth going forward.
Decent take up rate of M Zenya. M Zenya is Mah Sing’s latest M series project which focus on affordable properties. The project is in line with the company’s quick turnaround strategy as Mah Sing launched the project within one year after the acquisition of land back in July 2023.
M Zenya will be developed on 2.8 acres of land with one tower of serviced residence and retail. Built-up area is ranging from 762sf to 1,067sf with selling price starts from RM420k.
MIDF gathered that response to the launch of the project has been overwhelming with encouraging take up rate of 92%and believe that the good response could be due to the affordable pricing of the project and good location of the project.
Note that M Zenya is within walking distance (10m away) to Metropolitan Park Kepong and has view of Kepong Lake and park.
Healthy balance sheet. New sales outlook for Mah Sing remains positive, underpinned by upcoming launch of M Series projects namely M Terra and M Hana in Puchong, M Tiara in Johor, M Legasi in Semenyih, and M Azura in Setapak. New property sales from its M Series affordable house remains encouraging which should support Mah Sing’s new sales target of RM2.5b for FY24.
Meanwhile, Mah Sing remains on the lookout for land to further expand its property development business as its balance sheet is healthy with low net gearing of 0.08x as of FY23.
