Author Topic: Mahsing  (Read 712 times)

Offline Teosh

  • Companion of Honour
  • ***
  • Posts: 976
« on: November 28, 2019, 11:06:02 AM »
Mah Sing nears RM1.5b sales target but posts lower 3Q earnings
Syahirah Syed Jaafar
The Edge Financial Daily

November 28, 2019 09:50 am +08

KUALA LUMPUR: Mah Sing Group Bhd’s net profit for the third quarter ended Sept 30, 2019 (3QFY19) declined 22% to RM50.02 million from RM64.23 million a year ago on lower revenue from its property development segment.

Revenue decreased 18% during the quarter, citing sales from new projects to contribute to both top and bottom lines as construction progresses.

For the nine-month period, net profit also fell 24% to RM155.35 million, as revenue dipped 20% to RM1.35 billion from a year ago.

However, the group said it is nearing its 2019 sales target of RM1.5 billion, after registering RM1.14 billion sales in the nine-month period ended Sept 30, 2019.

“We have always believed that properties in the affordable range and at good locations are still seeing good demand. The projects that we have recently launched or currently in the pipeline are all affordably priced with good accessibility and connectivity. This showcases our commitment in continuously providing quality affordable homes to the homeowners as 81% of our full-year target sales for 2019 are from residential properties below RM700,000,” said Mah Sing group managing director Tan Sri Leong Hoy Kum said in a statement.

It said the group’s balance sheet continues to remain healthy with cash and bank balances of approximately RM1 billion, which will help replenish its land bank as it continues to focus on the affordable property segment.

“In line with our growth strategy, we are constantly on the lookout for prime land at strategic locations with attractive pricing points as it resonates with our aim to expand in areas with large population growth. Projects which are located within well-established surrounding neighbourhoods, equipped with ready amenities and easily accessible infrastructures, coupled with strategic access to highway connectivity will always be the driving factors for our products to be well received in the market amid the scarcity of prime lands in Klang Valley today,” said Leong.

Looking ahead, Mah Sing said it has remaining land bank of 2,064 acres (835.3ha) as of Sept 30, with remaining gross development value and unbilled sales of approximately RM25.5 billion.

It said this will provide steady earnings visibility for the group and sustain growth for the next eight to nine years.

Shares in Mah Sing settled 1.5 sen or 2.22% higher at 69 sen yesterday, bringing it a market capitalisation of RM1.68 billion.