Mah Sing Group Bhd has retained BUY calls from RHB Research, MBSB Research and CIMB Securities following its proposed RM617.9 million Southville City land disposal, with target prices of RM1.40, RM1.37 and RM1.55 respectively. MBSB Research raised its target from RM1.25 while RHB and CIMB kept theirs unchanged.
RHB Research said the disposal of 78.8 acres of freehold commercial land to WG Malaysia X could generate an estimated RM120 million to RM150 million gain, with the transaction targeted for completion in the second half of 2027. It said the earnings boost could lift FY27 dividend yield to almost 7% under Mah Sing’s 40% payout policy.
MBSB Research estimated a net disposal gain of around RM150 million after conversion premiums and infrastructure costs, potentially lifting FY27 earnings by 49% and dividend per share by 2.3 sen to 8.3 sen, equivalent to a 7% yield.
CIMB Securities was more bullish, estimating the disposal could generate a net gain of RM141 million to RM164 million and lift FY27 core profit by 51% to 60% to RM415 million to RM439 million. It expects dividend per share to rise to 7.9 sen to 8.4 sen, translating into a 6.8% to 7.2% yield.
The analysts also highlighted Mah Sing’s longer-term data centre ambitions, with potential opportunities at Southville City, Bandar Meridin East and MS Industrial Park in Kulai. RHB Research said the strategy could help establish a recurring income portfolio from digital infrastructure assets.
As of 10.25 am, the stock price gained 0.85% to RM1.18.
