KUALA LUMPUR: Mah Sing Group Bhd's venture into the data centre sector is projected to contribute RM60 million to the company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the fiscal year 2026 (FY26).
Rakuten Trade Sdn Bhd highlighted that the recent disruptions in global IT infrastructure calls for the urgent need for robust data centre strategies, offering a timely opportunity for Mah Sing's newly established data centre hub.
Recently, Mah Sing announced a partnership with Bridge Data Centres Malaysia to develop a 100 MW data centre facility on 17.55 acres of land in Southville City.
This marks the company's initial step into the data centre market, with future plans to expand to a 500 MW capacity on a 150-acre site.
"In this collaboration, Mah Sing will provide the land in exchange for an estimated 20 per cent stake in the joint venture.
"This development positions Mah Sing at the forefront of the growing demand for data centre services, driven by increasing digitalisation and IT infrastructure needs," the firm said.
The firm also noted that Mah Sing's development in Taman Desa is expected to be popular, given its prime location, less than 10 kilometres from Kuala Lumpur's city centre.
"The development, with an estimated gross development value (GDV) of around RM1.01 billion, will be executed in two phases: M Aspira, featuring approximately 1,600 residential units on 3.7 acres, and Residensi Madani, comprising about 800 units on 2.47 acres.
"Registration for M Aspira is expected to open in the third quarter of 2024, offering modern, well-designed homes targeted at urbanites, first-time homebuyers, and foreign buyers, incorporating Mah Sing's signature lifestyle concepts," it added.
Additionally, the company is expected to achieve net earnings of RM244.3 million and RM275.4 million for the financial years 2024 and 2025 (FY24/25).
Rakuten Trade stated that this projection is backed by substantial unbilled sales totalling RM2.32 billion.
The firm also mentioned that the forecast is strengthened by increased revenue from the completion of several projects.
Rakuten Trade has issued a 'buy' recommendation for Mah Sing, with a target price of RM2.23.