Mah Sing Share Price Plunges Over 22% As DC Uncertainty Weighs
The share price of property and recently data centre development Mah Sing has seen its share price plunge by over 22% in the past one month.
The group’s share price closed at 1.38 today after rising to 1.43 in morning trading, the stock however has been extremely volatile for the whole day. On a one month basis, the stock was at 1.76 on 20 December but has dropped significantly after the Biden Administration announced on the AI Chip restriction.
RHB Research today highlighted that so far Mah Sing has locked in around 21ha of land in Southville City for a DC hub development with Bridge DC and that the group’s management is finalising the joint venture agreement (JV) with Bridge DC for the first phase, which will span 7.1ha. The group had initially earmarked 61ha for the development with a planned capacity of up to 500MW.
“However, although Bridge DC is backed by US-based Bain Capital, there are uncertainties on who the off-takers are, and how this AI chip restriction may affect Mah Sing’s investments if the off-taker turns out to be a China-based company (ByteDance Ltd is the anchor tenant at Bridge DCs in Johor).
“Additionally, given the latest AI woes, the DC deals for Phase 2 (involving 14ha and the remaining landbank in Southville DC Hub (roughly 40ha) may take a longer time to be realised, going forward,” the research house said in a note.
