KUALA LUMPUR: RHB Research is upbeat on Mah Sing Group Bhd’s recent land acquisition in Sepang, which is planned for Mah Sing Business Park’s development.
The bank-backed research firm in a report said apart from the land’s reasonable pricing, the company’s collaboration with a Chinese party should also ensure promising take-up of industrial properties in this project.
To recap, Mah Sing signed a conditional sale and purchase agreement with Premier Land Resources (under Yuwang Group, a private plantation firm) to acquire 561.65 acres of leasehold agricultural land
in Sepang.
The acquisition involves an initial parcel measuring 185 acres with a purchase price of RM100.7 million and comes with
an option to purchase the 376.65-acre balance in adjacent parcels within four years at the same land price of RM12.50 per square foot.
Mah Sing South Sea Industrial Development (MSSSID) will collaborate with the landowner and jointly develop the land, with MSSSID holding 80 per cent and the landowner holding 20 per cent.
MSSSID is a partnership entity between Mah Sing, which holds a 70 per cent stake and The South Sea Capital (TSSC) holding 30 per cent.
“Led by TSSC’s executive president Sun Jian Wei’s established network with potential investors from Jiangsu Province and neighbouring Shanghai, as well as Mah Sing’s profile in the plastics manufacturing sector, we believe this new business park will see encouraging take-up upon its launch in the second half (2H) of 2024,” RHB Research noted in the report.
The land is located in Sepang and is only 10km from the Kuala Lumpur International Airport (KLIA). Reputable logistics hubs such as Cainiao Warehouse by Alibaba Group, POS Aviation E-Commerce Hub and DHL Global Forwarding are in the vicinity.
The site is also well connected via major highways such as KLIA Expressway, ELITE Highway, North-South Expressway and others.
Surrounding amenities include the Express Rail Link (ERL) Salak Tinggi Station, KIP Mall in Kota Warisan and some other educational institutions.
Mah Sing Business Park, with a gross development value (GDV) of up to RM2 billion for the entire 561.65 acres, comprises customised factories, industrial lots, clusters, and semi-detached and detached factories catering for medium and light industrial activities.
RHB Research maintains a Buy call for Mah Sing and sees the impact on the company’s FY25 earnings to be minimal.
“Our new target price of RM1.12 per share is now based on a 50 per cent discount to revalued net asset value (RNAV) from 55 per cent, given improving sentiment in the property market,” RHB Research noted.
