KUALA LUMPUR (April 8): TA Securities has maintained its 'buy' rating on Mah Sing Group Bhd at RM1.26 with a higher target price of RM1.57 (from RM1.24) based on a higher target calendar year 2025 price-to-book value multiple of one times.

In a note on Monday, the research house said this valuation falls within the stock's upcycle valuation band, which ranges between 0.8 times and 1.2 times.

Mah Sing has acquired 100.4 acres of freehold land in Johor Bahru for RM103.8 million, marking its second land acquisition in 2024.

This newly acquired land is planned for a township development featuring landed homes, serviced apartments, and shops, which is expected to generate an estimated gross development value of RM1.45 billion.

TA Securities said that overall, it is optimistic about the proposed acquisition, given its strategic location and reasonable acquisition price.

“We believe the ongoing rally in property counters' share prices has further potential due to strong demand, favourable market conditions and positive investor sentiment.

“Considering the favourable outlook, we raised our target P/B multiple to one times from 0.75 times, and arrived at a new target price of RM1.57/share (previously RM1.24/share).

“We believe our target P/B is not excessive, especially considering the stock's historical trading range of 0.8 times to 1.2 times forward P/B during the previous upcycle in 2012-2013,” it said.