Spurred by 2017 strong take up of affordable homes, Mah Sing sets 74% of 2018 RM1.8billion sales target on products priced below RM500,000.
2017
• Achieved RM1.8 billion property sales target, 45% residential sales from affordable products below RM500,000
• 3 new land acquisitions
• Net cash position for 3rd consecutive quarter, healthy balance sheet for further acquisitions and joint ventures
• 6.5 sen dividend payout – achieves minimum 40% pay out for 12th consecutive year
2018
• Targets minimum RM1.8billion sales, plans 6 new launches in 1H2018
• Continues focus on affordability; 74% of residential sales target priced below RM500,000
• Expected final stage billings of approx. RM587 million to boost liquidity
• On-track delivery of key infrastructure in Southville City township
Mah Sing sees earnings improvement in FY2017, records RM361.9million net profit
The Group posted a profit before tax of approximately RM472.3 million and net profit of approximately RM361.9 million, on the back of revenue of approximately RM2.9 billion for the year ended 31 December 2017. On a quarterly basis, the Group recorded net profit of approximately RM88.8 million and revenue of approximately RM760.8 million.
Remaining GDV & unbilled sales of RM27.6billion supports growth for next 8 years
The Group currently has approximately 2,125 acres of undeveloped land with remaining gross development value (GDV) and unbilled sales of approximately RM27.6 billion which can support the Group’s revenue and earnings growth for the next 8 years.
Spurred by 2017 strong take up of affordable homes, Mah Sing sets 74% of 2018 RM1.8billion sales target on products priced below RM500,000
Mah Sing achieved its 2017 sales target of RM1.8 billion anchored by its Reinvent Affordability campaign, which echoes the Government’s effort to increase home ownership by providing affordable products below RM500,000 with good specifications and strategic locations near public transportation such as MRT and LRT.
45% of total residential sales achieved for 2017 were from products priced below RM500,000, spurring the group to increase its focus in this segment. Tan Sri Dato’ Sri Leong said, “We have a minimum RM1.8billion sales target this year, with 74% of targeted residential sales priced below RM500,000. For 2018, affordability is front and centre for Mah Sing as we will focus on developing homes for Malaysia’s young demographic and growing population who are looking for their first homes.”
“Our planned new residential launches below RM500,000 include M Centura in Sentul, M Vertica in Cheras, Southville City’s new Sensa Residence and Cerrado Residential Suites Tower C and D in Greater KL, Meridin East’s 2-storey link homes in Johor Bahru and M Vista@Southbay in Penang. Our only new residential launch in 2018 above RM500,000 is M Aruna in Rawang which are 2-storey link homes indicatively priced from RM550,000. Besides that, we have existing products below RM500,000 which include Southville City’s Cerrado Tower A&B and Savanna Executive Suites, Residensi Seri Wahyu in Lakeville Residence, Jalan Kuching, Rumah Selangorku in M Residence 2 and Meridin Bayvue in Johor,” Tan Sri Dato’ Sri Leong added.
Mah Sing will also be launching M-Parc, the Group’s new industrial park in Bukit Mertajam, Penang in March 2018.
Busy 1H2018 with 6 new launches, Arts & Lights Exhibition, Southville City’s direct interchange targets completion in end March and will open soon
Mah Sing will be kickstarting 2018 by launching new blocks in both M Vertica and M Centura in March. M Vertica will launch a new tower comprising 685 units of 3-bedroom 850sqft and 4-bedroom 1,000 sq ft residential units, priced from RM450,800. M Centura will launch a new tower comprising 610 units of 2-bedroom 646sqft and 3-bedroom 850sqft residential units priced from RM328,000.
New launches slated for Q2 2018 includes Southville City’s Sensa Residence and M Aruna in Rawang in Greater KL, Meridin East’s 2-storey link homes in Johor Bahru and M Vista@Southbay in Penang.
The Group will also be continuing its Arts and Lights exhibition which has drawn more than 65,000 visitors to Icon City, M Vertica and M Centura sales galleries. Arts and Lights will next be on display in M Aruna’s sales gallery in Rawang on 17 March 2018.
The Group’s largest township in the central region, Southville City@ KL South, targets to complete its direct interchange into the KL-Seremban Highway by end March and will open soon. The completion of the direct interchange coincides with the delivery of vacant possession of Avens superlinked homes and Savanna Executive Suites, reducing their distance to KL City to only 19km. This will make the new launches planned for Southville City in 2018 more appealing to potential buyers.
Net cash position for 3rd consecutive quarter, healthy balance sheet for further acquisitions and JV opportunities, RM587million final stage billings in 2018
Tan Sri Dato’ Sri Leong shared, “Mah Sing is in net cash position for the third consecutive quarter as at 31 December 2017. This year, we expect approximately RM587million from final stage billings on delivery of vacant possession which will further boost the Group’s liquidity.”
“With disciplined financial management and a healthy balance sheet, we are in a good position to lock in more land and explore joint venture opportunities with a focus on affordable housing projects within Greater KL and the Klang Valley. Last year we acquired 3 pieces of prime land and we intend to increase our Greater KL portfolio to 75% of our total remaining GDV from the current 66% in the next two years,” he added.
Property Division continues to deliver
For the year ended 31 December 2017, revenue from property development was approximately RM2.6 billion with an operating profit of approximately RM432.3million.
Projects which contributed to the Group’s results in Greater KL and Klang Valley included Southville City @ KL South, Lakeville Residence @ Jalan Kuching, D’sara Sentral @ Sungai Buloh, M Residence and M Residence 2 @Rawang, M City @ Jalan Ampang, Icon City @ Petaling Jaya, Garden Residence, Clover@Garden Residence and Garden Plaza in Cyberjaya, Kinrara Residence @ Puchong, Icon Residence @ Mont’ Kiara and Star Avenue @ Sungai Buloh.
Projects from other regions that also contributed to the Group’s results were Penang’s Southbay City, Legenda@Southbay and Ferringhi Residence, Johor’s The Meridin@Medini, Meridin East, Sierra Perdana, Mah Sing i-Parc@Tanjung Pelepas and Austin Perdana as well as Sutera Avenue in Kota Kinabalu, Sabah.
Dividend payout of minimum 40% for 12th consecutive year, attractive 5.33% dividend yield (based on Mah Sing’s share price as at 27 February 2018)
The Group is proposing a final dividend of 6.5sen per ordinary share in respect of the financial year ended 31 December 2017, which translates to an attractive dividend yield of approximately 5.33% (based on Mah Sing’s share price as at 27 February 2018), subject to shareholders’ approval in the upcoming Annual General Meeting.
This marks 12 consecutive years of Mah Sing’s dividend payout of minimum 40% of net profit, in line with the Group’s commitment to reward its shareholders while maintaining its disciplined approach to sustainable long-term growth.