MIDF Amanah Investment Bank Bhd (MIDF Research) has maintained a BUY recommendation for Mah Sing Bhd following the property developer's latest proposed land acquisition of a 2.12ha freehold prime land along Old Klang Road for RM112.97 million that would enhance its M-Series of affordable residential properties in Klang Valley.

The research house has adjusted Mah Sing's target price from RM2.01 to RM2.03 to incorporate the anticipated RNAV contribution from this land acquisition.

MIDF Research expects a total return of 18.9%, inclusive of a 2.9% dividend yield, projecting a share price return of 16%.

This revised outlook is supported by Mah Sing's proactive approach to land banking and a resilient balance sheet, which enables continued strategic acquisitions with minimal impact on gearing.

Following this acquisition, Mah Sing's net gearing is expected to rise only slightly from 0.1 times to 0.13 times, allowing it to retain a strong position for future expansion.

Additionally, MIDF Research anticipates sustained interest in Mah Sing's new sales offerings due to this demand, which could positively impact Mah Sing's revenue in the coming years.

Beyond residential projects, Mah Sing recent joint venture with Bridge Data Centres to develop Mah Sing DC Hub @ Southville City diversifies its portfolio by tapping into the data centre market, offering long-term recurring income opportunities.

MIDF Research remains optimistic about the firm's strategic expansion into this high-demand sector, which supports its growth and stability objectives, underscoring its expansion strategy benefits, bolstering its portfolio while adapting to evolving market trends.