RHB Investment Bank Bhd (RHB Research), MBSB Investment Bank Bhd (MBSB Research) and CIMB Investment Bank Bhd (CIMB Securities) have maintained their positive calls on Mah Sing Group Bhd, with BUY recommendations and target prices ranging from RM1.25 to RM1.55, as the property developer’s first-quarter earnings met expectations and sales momentum remained encouraging.
RHB Research maintained its Buy call with a revised target price of RM1.40, while MBSB Research kept its RM1.25 target price and CIMB Securities maintained Buy with a lower target price of RM1.55 after factoring in higher building and logistics costs.
Mah Sing posted first-quarter 2026 core net profit of about RM68 million to RM69 million, broadly in line with analysts’ forecasts. Although revenue declined due to slower progress billings during the festive season and a higher proportion of projects still in early construction stages, profitability improved on cost savings from completed developments and lower operating expenses.
Analysts highlighted that property sales remained on track to meet management’s RM2.76 billion target for 2026. Sales reached RM978 million in the first five months of the year, supported by projects such as M Grand Minori in Johor, M Aspira in Taman Desa and M Nova in Kepong.
The group’s upcoming launches, with a combined gross development value exceeding RM2 billion, include M Mira in Setapak, M Hana in Puchong, M Amaya and M Cora in Penang as well as M Tiara 2 and MS Industrial Park @ Kulai in Johor.
Analysts also noted that unbilled sales rose to RM3.33 billion, providing more than a year’s earnings visibility. While net gearing increased following recent land acquisitions, CIMB Securities said Mah Sing’s liquidity remained healthy and could improve with more than RM430 million in vacant possession proceeds expected from upcoming project completions.
Despite concerns over rising construction costs and geopolitical uncertainties, analysts believe Mah Sing’s focus on affordable housing, strong launch pipeline and attractive dividend yields should continue to support earnings growth.
As of 10.10 am, the stock price gained 0.51% to RM0.995.
