[%tXRr%] 
Research by HLIB
Buy – TP of MYR 1.95

“New land acquisition in Taman Desa” 

Mah Sing announced the acquisition of 6.2 acres of land in Taman Desa for RM108m. The land will be used for two developments: M Aspira , a mixed-use project with 1.6k residential units starting at RM448.8k, and Residensi Madani, which will offer 800 affordable units priced at RM200k each. The total estimated GDV for these projects is RM1.01bn. We are positive on this acquisition due to the attractive land cost-to-GDV ratio, strong market demand anticipated for the location and price point as well as fast turnaround given that launch is expected to be in end-FY24 or early-FY25. We anticipate the project can add annual earnings of around RM26m from FY26-29 assuming 17% PBT margin and 5-year development period. Maintain BUY with unchanged TP of RM1.95 based on SOP valuation.

Analyst(s):
Tan Kai Shuen, CFA
[%EJHM%]

$KLSE-MAHSING 
Research by HLIB
Buy – TP of MYR 1.95

“New land acquisition in Taman Desa” 

Mah Sing announced the acquisition of 6.2 acres of land in Taman Desa for RM108m. The land will be used for two developments: M Aspira , a mixed-use project with 1.6k residential units starting at RM448.8k, and Residensi Madani, which will offer 800 affordable units priced at RM200k each. The total estimated GDV for these projects is RM1.01bn. We are positive on this acquisition due to the attractive land cost-to-GDV ratio, strong market demand anticipated for the location and price point as well as fast turnaround given that launch is expected to be in end-FY24 or early-FY25. We anticipate the project can add annual earnings of around RM26m from FY26-29 assuming 17% PBT margin and 5-year development period. Maintain BUY with unchanged TP of RM1.95 based on SOP valuation.

Analyst(s):
Tan Kai Shuen, CFA
kstan@hlib.hongleong.com.my