Mah Sing achieves quarter sales of RM632.1 million with more launches in Q3 2016

Mah Sing  achieves quarter sales of RM632.1 million with more launches in Q3 2016

SELANGOR, 28 November – Mah Sing Group Berhad (Mah Sing) recorded net profit of approximately RM275.7million on the back of revenue of approximately RM2.2billion for the nine-months ended 30 September 2016

On a quarterly basis, the Group recorded net profit of approximately RM91.9million and revenue of approximately RM732.4 million for the 3rd quarter ended 30 September 2016. This represents an 8.9% improvement in net profit as compared to the same quarter last year.  

Operating profit for property development for the nine-months ended 30 September 2016 was approximately RM367.9million, which is an improvement of approximately 11.35% as compared to approximately RM330.4million recorded in the corresponding period last year.

MAINTAINING HEALTHY BALANCE SHEET; ON THE LOOKOUT FOR LANDBANKING AND JOINT VENTURE OPPORTUNITIES

As at 30 September 2016, the Group‘s cash and bank balances amounted to approximately RM727.9million, with a low net gearing ratio of 0.09times. “Mah Sing will continue to adhere to prudent financial management.  We look out for potential land acquisitions, joint ventures and investment with a fair degree of diligence, mainly in Greater Kuala Lumpur, which is our main focus at this juncture. We are flexible as we need to find acceptable growth opportunities without taking on too much risk,” said Mah Sing’s Group Managing Director Tan Sri Dato’ Sri Leong Hoy Kum.

During the quarter, the Group paid RM156.6 million dividend for FY2015, marking the 10th anniversary of uninterrupted minimum 40% annual dividend payout record.

REVISED 2016 SALES TARGET TO RM1.8BILLION IN VIEW OF GLOBAL & DOMESTIC UNCERTAINTIES, CLOCKED UP RM1.4BILLION IN 9 MONTHS 2016

Responding to the challenging market conditions coupled with uncertainties as a result of recent global and domestic developments, as well as the lack of incentives for private developers in Budget 2017, the Group has revised its 2016 full year sales target from RM2.3billion to RM1.8billion.  For the nine-months ended 30 September 2016, the Group achieved cumulative property sales of approximately RM1.4billion or approximately 77.8% of the sales target.

Tan Sri Dato’ Sri Leong commented, “We launched more projects in the third quarter, clocking up sales of approximately RM632.1million.  We have diligently launched properties at the right prices in prime locations, targeting the correct market segment ie the mass market and there was keen buyer interest for our recent launches.  While bookings remained high, the transition to SPA signings was protracted due to various global uncertainties and the difficulty of buyers in obtaining loans. Hence we are taking a pragmatic view and revising our full year sales target.”

The Group’s recent launches included Cerrado Residential Suites Tower A and B in Southville City, KL South, The Final Tower of Lakeville Residence,Taman Wahyu, Ferringhi Residence 2, Penang, as well as The Greenway Double Storey Link Homes in Meridin East@Iskandar Malaysia,Johor.   

MAH SING’S “Luxury made Affordable” FOR FIRST TIME BUYERS AND “Lock and Roll” for upgraders

The Group has a balanced property portfolio, and diversified product offerings in terms of asset type and geographical locations.  The Group’s innovative pricing strategy, “Luxury made Affordable” targets first-time buyers and strategic sales scheme “Lock and Roll” is tailored for upgraders.

“Lock & Roll” is ongoing until 31 December 2016 and is an innovative deferred financing plan where buyers can first “lock” a completed unit with a RM10,000 booking fee and “roll” their cash for 24 months .

Tan Sri Dato’ Sri Leong commented, “Under normal circumstances, buyers need to pay 100% of the property value upon Vacant Possession of a completed property but this campaign allows a buyer to roll their cash for other business interests or investments while paying a minimal amount during the first 2 years.”

As an illustration, the buyer selects a RM1 million completed property and qualifies for an 80% margin of financing (RM800,000 loan).  The buyer will pay the RM200,000 differential sum, but the bank will only draw down 50% of the loan ie RM400,000.  Assuming an interest rate of 4.5%, interest payment is RM18,000 per annum. Effectively the buyer pays only this interest portion of RM1,500 for 24 months after moving in. During the 25th month, the bank will draw down the balance of the loan and only then will the buyer start to service the full monthly instalment.  

“Lock & Roll will entice buyers who have been looking for completed properties and need the extra encouragement to commit to a home,” shared Tan Sri Dato’ Sri Leong Hoy Kum.

OUTLOOK FOR PROPERTY SECTOR IN 2017

The property market is expected to remain flattish due to uncertainties in global and domestic economies. However, long-term demand for property in Malaysia will continue to be supported by a young population demographic, conducive interest rate, continued GDP growth, and urbanisation.  Mah Sing is also in a good position to address the supply shortage of affordable homes catering to the middle-income group with its diversified range of properties.

The Group will continue to focus on nimble response to market and quick asset turn.  The established Mah Sing brand, track record of delivery and solid financial capabilities will allow the Group to respond to the cyclical market.

In addition, the Government’s commitment to upgrade the nation’s public transportation infrastructure which includes the High-Speed Rail (HSR), as well as the Mass Rapid Transit (MRT) and Light Rail Transit (LRT) Line extensions, will have a direct impact on Mah Sing properties, especially within Greater Kuala Lumpur. 

Mah Sing will be previewing the Final Tower of D’sara Sentral, Sungai Buloh on 26 and 27 November 2016. The final Tower comprises 197 units of serviced residence with built-ups from 782 square (sq) feet (ft). Units are indicatively priced from RM603,000. 

Share