Mah Sing Group Berhad enjoys strongest quarter sales of RM 640 million in Q3 2015

Mah Sing Group Berhad enjoys strongest quarter sales of RM 640 million in Q3 2015

KUALA LUMPUR, Nov 27: Mah Sing Group Berhad posted revenue of approximately RM2.3 billion and net profit of approximately RM273.8 million for the nine-months ended 30 September 2015. This represents a 13.3% improvement in revenue and 4.9% improvement in net profit compared to the corresponding period last year. Revenue from property development is approximately RM2.1 billion, marking near to 15.3% improvement as compared to approximately RM1.8 billion achieved in the corresponding period last year.

GROUP ACHIEVES PROPERTY SALES OF RM1.6BILLION IN FIRST 9 MONTHS OF 2015

The Group achieved property sales of approximately RM640million for the quarter ended 30 September 2015, marking the strongest sales quarter of 2015. Mah Sing achieved cumulative sales of RM1.6 billion as at 30 September 2015 due to products that are in line with current market demand which is focused on affordability. Mah Sing’s Group Managing Director Tan Sri Dato’ Sri Leong Hoy Kum noted, “The past 12 months have been challenging and many developers have been prudent with launches. The good sales over the past years and first 9 months of the year helped us achieved RM4.75billion unbilled sales which will provide good cashflow in the future. It also ensures continued revenue and earnings visibility for the immediate term.”

 POSITIVE CONTRIBUTION FROM PROPERTY DEVELOPMENT ACTIVITIES

The improvement in results for the nine-months ended 30 September 2015 compared to the corresponding period last year was attributable to the higher work progress and sales from the Group’s ongoing development projects such as M City in Jalan Ampang, Icon City in Petaling Jaya, Southville City @ KL South, M Residence 2 @ Rawang, Garden Residence, Clover @ Garden Residence and Garden Plaza in Cyberjaya. Other projects that contributed to the Group’s results in Greater KL and Klang Valley included Kinrara Residence in Puchong, M Residence @ Rawang, Icon Residence in Mont’ Kiara, Lakeville Residence in Taman Wahyu, D’sara Sentral in Sungai Buloh and M Suites in Jalan Ampang. Commercial projects included Star Avenue @ D’sara. Furthermore, projects in Penang Island i.e. Ferringhi Residence, Southbay City and Legenda @ Southbay and projects in Iskandar, Johor Bahru i.e. Mah Sing iParc @ Tanjung Pelepas, Austin Perdana, Sri Pulai Perdana 2, Sierra Perdana and The Meridin @ Medini as well as Sutera Avenue in Kota Kinabalu, Sabah also contributed.

GROUP CONTINUES CONSERVATIVE, FLEXIBLE AND FOCUSED STRATEGY

CONSERVATIVE FINANCIAL MANAGEMENT: STRONG BALANCE SHEET WITH 0.05 TIMES NET GEARING

As at 30 September 2015, the Group had a cash pile of approximately RM1.3 billion and net gearing at 0.05 times. Its total unbilled sales and remaining landbank gross development value (GDV) of RM30.6billion can sustain the Group’s revenue growth over the next 8 years.

FLEXIBLE FOR GROWTH OPPORTUNITIES

With strong balance sheets and a low net gearing, the Group is in a good position to capitalize on new landbanking opportunities. The Group is adopting a prudent approach despite its healthy cash pile of RM1.3billion, and will continue to look out for reasonably priced, strategic landbank with good payment terms which fits the Group’s business model to balance stability and longer term growth visibility.

 FOCUSED ON RIGHT PRODUCT FOR RIGHT MARKET

The Group will continue to focus on end-user demand for beginner homes, driven by young demographic, continuing new household formation and stable labour market conditions. The Group recently released a new block in D’sara Sentral in Sungai Buluh from RM580,000, featuring the first dual key concept in Sungai Buluh, with direct linkage to the upcoming MRT, as well as the 5th block in Lakeville Residence, Taman Wahyu from RM594,800. Both achieved steady take up due to their concept, location and price points. Future sales pipeline include the Meridin East township in Pasir Gudang with affordable landed homes, indicatively priced from RM350,000, Cerrado serviced apartments in Southville City@KL South, Bangi indicatively priced from RM388,000 as well as the new township of M Residence 3 in Rawang. While the Group carefully times its launches to ensure products are in line with market demand, it also actively pursues sales from existing projects.

PROSPECTS AND FOCUS FOR MAH SING GROUP BERHAD

Despite the challenging operating conditions amidst tight mortgage lending and cautious sentiments, the Group remains confident of delivering sustainable performance for the financial year, supported by a solid track record, established branding and right market positioning, as well as prudent financial discipline and healthy liquidity profile. Backed by a diversified portfolio of 35 ongoing projects that are well spread-out throughout different stages of project lifecycle, the Group is well positioned to ensure consistent earnings delivery. These projects are mainly focused in Greater KL and Klang Valley, as well as strategic locations in Penang island, Iskandar Malaysia and Johor Bahru as well as Kota Kinabalu in Sabah. The balanced portfolio also provides flexibility for launches to be phased and the mix adjusted according to operating conditions to ensure maximization of project development value

 

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