Kenanga Research has reiterated its “Buy” call on Mah Sing Group Bhd, maintaining its target price (TP) at RM2.46. The recommendation reflects continued confidence in the group’s strategic direction, particularly amid potential changes in AI chip export regulations that could benefit Malaysia’s data centre market.
Recent developments surrounding the US AI diffusion rule indicate that the Biden-era restrictions on AI chip exports may soon be repealed. If enacted, this change could remove the current tiered system that limits chip exports based on country classification, including Malaysia. Instead, the US may adopt a more nuanced licensing regime, allowing greater flexibility for companies like Mah Sing to participate in data centre expansions.
Kenanga Research views the potential removal of the tiered restrictions as a positive catalyst for data centre growth, with Malaysia positioned to benefit as global tech firms accelerate their infrastructure investments. The construction sector, particularly companies like Mah Sing with significant industrial land assets, is expected to see a valuation uplift.
Mah Sing’s ongoing discussions to leverage its Bangi and Southville land for data centre projects align well with this potential policy shift. As data centres continue to be a high-growth area, Mah Sing’s strategic land positioning could unlock significant value, leading to potential long-term re-rating.
Kenanga also highlights the broader market environment, where construction and utility sectors are set to benefit from increased data centre activities. YTL Power International Bhd and Tenaga Nasional Bhd, both with existing data centre infrastructure, are also well-positioned to gain.
With potential easing of AI chip restrictions, Mah Sing’s strategic land bank could attract more partnerships and investments, strengthening its market position. Kenanga’s positive outlook on Mah Sing remains intact, supported by the company’s proactive approach to capitalising on emerging opportunities in the data centre sector.
