HLIB Research said the collaboration would help Mah Sing diversify and re-enter into the industrial development space.
PETALING JAYA: Mah Sing Group Bhd
’s collaboration with China Electronic Chamber of Commerce (CECC) will open new avenues for the company to sell its industrial products besides helping Chinese investors set up their manufacturing facilities in Malaysia.
The opportunity is presented due to the heightening and protracted trade friction between the United States and China, causing many Chinese manufacturers to look at relocating their manufacturing facilities overseas.
This is so because goods produced outside of China would not be subjected to the extra tariffs imposed by the United States on goods produced in China.
The US tariffs are imposed based on the country of origin of the goods.
CECC is a non-profit industry association that has about 14,000 members of Chinese electrical and electronic manufacturers.
HLIB Research said the collaboration would help Mah Sing diversify and re-enter into the industrial development space.
Currently, the property group has 60 acres of industrial land in Johor and is in the midst of a negotiation for the acquisition of another piece of industrial land.
Before pivoting to focus on affordable residential developments in recent years, Mah Sing had vast experience in industrial developments.
To date it has completed four industrial parks that were launched between 2010 and 2012.
HLIB is positive about the Mah SIng’s collaboration with CECC and maintained its “buy’’ call on the stock with an unchanged target price of 84 sen a share.
It is also positive on the group’s prospects given its properties are priced in the affordable-to-mid range which should continue to do well given the growing middle income class in the Klang Valley.
