Mah Sing Group Bhd has secured overwhelming shareholder approval for its proposed acquisition of a 419.2-acre industrial land in Kulai, Johor, paving the way for the development of a RM2.3 billion industrial park that analysts believe will strengthen the group’s long-term growth prospects.
According to CIMB Securities, shareholders voted almost unanimously in favour of the acquisition at an extraordinary general meeting held on July 22, with 99.9% approving the proposal.
The project, known as MS Industrial Park @ Kulai, will be developed through a 60:40 joint venture between Mah Sing and Kuala Lumpur Kepong Bhd (KLK). The land will be acquired from KLK’s wholly owned subsidiary, Aura Muhibah Sdn Bhd, for RM273.9 million, translating into a land cost equivalent to approximately 12% of the project’s gross development value (GDV) of RM2.3 billion.
CIMB Securities said the industrial park is strategically positioned to capitalise on Johor’s growing manufacturing ecosystem.
Located with strong connectivity to Senai International Airport, Port of Tanjung Pelepas and Johor Port via major highways, the development is expected to attract companies operating in high-value industries such as electrical and electronics (E&E), semiconductors, artificial intelligence (AI), pharmaceuticals, food and beverage, and maintenance, repair and overhaul (MRO) services.
The research house noted that the project has already received the necessary support from the Johor state government.
Mah Sing plans to launch the first phase of ready-built factories in the fourth quarter of 2026, while the full five-phase development is expected to be completed over six to eight years.
CIMB said the industrial development represents an important step in diversifying Mah Sing’s earnings away from its traditionally residential-focused portfolio.
Industrial developments are expected to contribute between 20% and 30% of the group’s future sales mix, providing greater earnings resilience amid softer conditions in the residential property market.
The research house also highlighted Mah Sing’s continued execution capabilities despite industry headwinds.
Its fully sold M Zenya residential project in Kepong has reached the topping-out stage and is on track for completion 13 months ahead of schedule, making it the group’s second accelerated project following M Astra, which achieved early completion in January 2026.
According to CIMB, these milestones demonstrate Mah Sing’s commitment to cost discipline and efficient project delivery despite rising construction costs and an uncertain economic environment.
CIMB noted that Mah Sing has built a strong track record in Johor, having completed approximately RM4.5 billion worth of residential and industrial developments in the state.
The group currently has a RM11.6 billion development pipeline in Johor, comprising projects including M Grand Minori, Meridin East, M Tiara 2 and Tiara Hills.
Johor also accounts for approximately 1,463 acres, or 55%, of Mah Sing’s remaining land bank, positioning the developer to benefit from increasing investment linked to the Johor-Singapore Special Economic Zone (JS-SEZ) and the upcoming Rapid Transit System (RTS) Link connecting Johor Bahru and Singapore.
CIMB Securities maintained its “Buy” recommendation on Mah Sing with an unchanged target price of RM1.55.
The research house said the stock continues to trade at a deep 60% discount to its revalued net asset value (RNAV) while offering attractive projected dividend yields of 5.4% to 5.7% over the FY2026 to FY2028 period.
CIMB believes Mah Sing’s growing exposure to industrial property developments, combined with its sizeable Johor land bank and established execution track record, leaves the company well positioned to capitalise on the state’s long-term economic transformation.
