[%AaAj%] 
Research by HLIB
BUY – TP RM1.95 

" Results in line, with progress in DC segment”

Mah Sing reported a 2Q24 core PATAMI of RM59.5 million (+6.0% QoQ; +25.7% YoY), which brought 1H24’s sum to RM115.6m (+19.3% YoY). The results were in line with expectations. Despite a YoY and YTD revenue decline due to lower billings from new property projects and export delays in manufacturing, the company achieved higher profit margins, leading to earnings growth. Mah Sing's property sales reached RM1.66bn in 8M24, 66.4% of its full-year target, with unbilled sales at RM2.43bn. Progress in their Southville DC Hub and negotiations for additional data centre land sales highlight the company's growth in this new segment. Manufacturing saw improvements, particularly in the glove segment and an expansion in Indonesia's plastic segment. Maintain forecasts and BUY rating with unchanged TP of RM1.95 based on SOP-valuation.

Analyst:
Tan Kai Shuen, CFA
[%zhvG%]

$KLSE-MAHSING 
Research by HLIB
BUY – TP RM1.95 

" Results in line, with progress in DC segment”

Mah Sing reported a 2Q24 core PATAMI of RM59.5 million (+6.0% QoQ; +25.7% YoY), which brought 1H24’s sum to RM115.6m (+19.3% YoY). The results were in line with expectations. Despite a YoY and YTD revenue decline due to lower billings from new property projects and export delays in manufacturing, the company achieved higher profit margins, leading to earnings growth. Mah Sing's property sales reached RM1.66bn in 8M24, 66.4% of its full-year target, with unbilled sales at RM2.43bn. Progress in their Southville DC Hub and negotiations for additional data centre land sales highlight the company's growth in this new segment. Manufacturing saw improvements, particularly in the glove segment and an expansion in Indonesia's plastic segment. Maintain forecasts and BUY rating with unchanged TP of RM1.95 based on SOP-valuation.

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