Partnership with CECC set to spur Mah Sing - MIDA | Malaysian Investment Development Authority
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Partnership with CECC set to spur Mah Sing

Partnership with CECC set to spur Mah Sing

18 Apr 2023

Mah Sing Group Bhd may see greater involvement in the industrial property development sector in its potential partnership with the China Electronics Chamber of Commerce (CECC).

RHB Research said it is upbeat on any collaboration between Mah Sing and the CECC as the ongoing US-China trade war may see further investment inflows to Malaysia.

“Some manufacturers based in China have decided to relocate. During the recent visit to China, Mah Sing’s group managing director Tan Sri Leong Hoy Kum showed support for this,” it said.

Accordingly, the group had said it will cooperate with CECC members from areas such as sourcing for land, the setting up production facilities and the exportation of goods for international markets.

“This potential tie-up may open up opportunities for the group to expand its industrial development in the future and this segment is now gaining traction in the real estate industry,” it said.

Meanwhile, RHB Research also noted Mah Sing’s property sales momentum continued to be encouraging this year even as the latter had maintained its RM2.2bil sales target for the year.

It was reported that the M Vertica project in Cheras and M Astra in Setapak saw very encouraging take-up rates in December 2022 and March 2023, which had prompted the group to open up for sale the final tower in both projects.

“Management indicated that industry loan approval rates have improved, resulting in better conversion of bookings into contractual sales for the company,” the research house said.

It maintained a “buy” call on the counter, with a raised target price to 77 sen from 65 sen before.

RHB Research said the target price is now based on a 65% discount to revalued net asset value from 75% for the property segment. Among factors which it has going for it is its healthy sales momentum and more land banking activities, the research house said.

Source: The Star

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