PETALING JAYA: Mah Sing Group Bhd’s collaboration with the China Electronic Chamber of Commerce (CECC) is expected to benefit the group.
The collaboration was announced during Mah Sing’s participation in the Malaysia-China Business Forum 2023 led by Prime Minister Anwar Ibrahim recently.
Hong Leong Investment Bank is positive on this collaboration, expecting the group to tap into the vast base of potential customers from CECC to sell its industrial products.
Hong Leong maintains their “buy” call with a target price of 84 sen.
CECC is a non-profit industry association of approximately 14,000 members from the electrical and electronics industry.
The collaboration would see Mah Sing providing land sourcing support to set up production facilities, and a better understanding of Malaysia’s real estate and manufacturing industry.
“Due to the heightening and protracted trade friction between the United States and China, many Chinese manufacturers are looking to relocate their manufacturing to outside of China,” said Hong Leong.
The US tariffs are imposed based on the country of origin of the goods.
Additionally, Hong Leong believes Mah Sing is well positioned to provide expertise to CECC given its experience in industrial development.
“To date, it has completed four industrial parks that were launched between 2010-2012.”
“With this collaboration, we expect that Mah Sing will diversify and re-enter the industrial development space. Currently, the group has 60 acres of industrial land within its 1,300-acre Meridin East township in Johor,” it said.
Beyond the CECC collaboration, Hong Leong is positive on the group’s prospects given the absence of prosperity tax and easing labour shortage issues.
At 3.15pm, Mah Sing’s share price was flat at 62 sen, giving it a market capitalisation of RM1.52 billion.