Mah Sing Records Net Profit Of Approximately RM90.4 Million.

Mah Sing Records Net Profit Of Approximately RM90.4 Million.

Kuala Lumpur, 2017 – Mah Sing Group Berhad (Mah Sing) posted a net profit of approximately RM90.4 million on the back of revenue of approximately RM723.5 million for the first quarter ended 31 March 2017.

The Group’s quarterly profit before tax of approximately RM120.6 million is RM7.8 million or 6.9% higher as compared to the immediate preceding quarter mainly due to higher profit recognition from completed projects in the current quarter.

For the period ended 31 March 2017, revenue from property development was approximately RM633.0 million and operating profit was approximately RM113.7 million.

The projects which contributed to the Group’s results in Greater KL and Klang Valley included Southville City @ KL South, Lakeville Residence in Taman Wahyu, D’sara Sentral in Sungai Buloh, M Residence and M Residence 2 in Rawang, M City in Jalan Ampang, Icon City in Petaling Jaya, Garden Residence, Clover @ Garden Residence and Garden Plaza in Cyberjaya, Kinrara Residence in Puchong, Icon Residence in Mont’ Kiara and Star Avenue in Sungai Buloh.

Projects from other regions that also contributed to the Group’s results include Penang’s Southbay City, Legenda @ Southbay and Ferringhi Residence, Johor’s Meridin @ Medini, Meridin East, Sierra Perdana, i-Parc @ Tanjung Pelepas and Austin Perdana as well as Sabah’s Sutera Avenue in Kota Kinabalu.

ACQUIRES 2 PIECES OF FREEHOLD LANDS WITH ESTIMATED COMBINED GDV OF APPROXIMATELY RM1.95BILLION IN KUALA LUMPUR FOR QUALITY PRODUCTS AT AFFORDABLE PRICING

Mah Sing recently acquired 2 pieces of prime freehold lands to offer quality products at affordable pricing. The 8.5 acre land in Sentul and 3.56 acre land fronting Titiwangsa Lake Gardens are expected to yield a combined potential gross development value (GDV) of approximately RM1.95 billion.

The Group’s land in Sentul will be developed into M Centura and plans to offer residential suites with indicative built up from 650 sq ft, indicatively priced from RM326,000. M Centura fronts Jalan Sentul Pasar, just opposite Sentul Point.

The land in Titiwangsa behind Istana Budaya is slated for an affordable transit oriented development just 250meters from the upcoming Hospital KL MRT station. These lake side condominiums are planned with indicative built up from 850 square (sq) feet (ft), indicatively priced from RM485,000.

In regards to the acquisition of the land in Titiwangsa, Mah Sing Properties received a letter dated 26 May 2017 from Messrs. Abdullah Chan & Co., Advocates & Solicitors, that there is a competing claim to the rightful ownership of the land, of which the Group and its legal counsel are in the course of verifying. A further announcement will be made in due course, where applicable.

With the Group’s two latest land acquisitions, Mah Sing’s prime landbanks, currently stands at 2,255 acres, with total remaining GDV and unbilled sales of RM31.5 billion.

After the announcement of the two land acquisitions, research houses CIMB Equities, RHB Research, TA Securities and AmInvestment Bank all upgraded calls to ‘Buy’ on Mah Sing’s shares.

MAH SING CONTINUES TO EYE MORE LAND ACQUISITIONS BACKED BY HEALTHY BALANCE SHEET

As at 31 March 2017, the Group’s cash and bank balances amounted to approximately RM837.6 million. Mah Sing also recorded a low net gearing of 0.02 times, which is well below the internal target of 0.5 times.

Mah Sing’s Group Managing Director Tan Sri Dato’ Sri Leong Hoy Kum said, “With our two recent land acquisitions in the Klang Valley, coupled with our existing landbanks, we are in a better position to meet the market’s demand for affordably priced homes in strategic locations. We are also looking out for more landbanks. Of course any new land acquisitions will need to be strategic and we will adhere to our prudent financial policy of maintaining a healthy net gearing ratio.“

ACHIEVED SALES OF RM410.3MILLION FOR THE FIRST 3 MONTHS OF 2017; TARGETS RM637 MILLION IN VACANT POSSESSION BILLINGS FOR 2017

Mah Sing achieved property sales of approximately RM410.3 million for the first 3 months of 2017, by offering products in line with market demand, namely beginner homes for the mass market and also upgrader homes in selected locations.  Approximately 70% of the sales achieved were from projects in Greater KL.

In terms of marketing campaigns, the Group’s RM23 million Celebration Rewards campaign is on-going till 30 June 2017. The campaign aims to reward buyers instantly and help in easing home ownership.

Besides steady sales take up, Mah Sing also has a healthy pace of delivery of new homes. The company targets approximately RM637 million in Vacant Possession (VP) billings during 2017 compared to RM523million achieved in 2016.

PROPERTY MARKET CONSOLIDATING BUT AFFORDABLE RANGE STILL SEEING GOOD DEMAND; TARGETING FURTHER LAUNCHES FOR THE REMAINDER OF THE YEAR WITH TOTAL ESTIMATED GDV OF APPROXIMATELY RM1.9 BILLION

Mah Sing believes that the property market is currently undergoing consolidation, with healthy mid to long term prospects due to strong fundamentals such as young population, stable employment and the continued development of public transport infrastructure.  According to Bank Negara, the Malaysian economy is still resilient with continued GDP growth. In 2016, the growth rate is at 4.2% and it is expected to have a growth rate of 4.3% – 4.8% in 2017.

Properties in the affordable range is still seeing good demand, and in 2017, the Group has lined up launches with estimated GDV of approximately RM1.9 billion, and targets 73% of residential sales priced below RM700,000.

The Group’s upcoming launches in 2017 include:

RM500,001 to RM700,000

Greater KL

  • 565 units of 2-storey link homes in new Rawang township and scheduled to launch in Q3 2017
  • OLO Residence in D’sara Sentral, Sungai Buloh. Comprising 197 units of serviced apartments and scheduled to launch in Q3 2017.

RM500,000 and below

Johor

  • Dandelion in Meridin East, Pasir Gudang. Comprising 90 units of 2-storey link home and scheduled to launch on 8th July 2017.
  • Fern in Meridin East, Pasir Gudang.  Comprising 394 units of 2-storey link home and scheduled to launch on 8th July 2017.
  • New tower of Caspian@Meridin Bayvue. Comprising 294 units of service apartments and scheduled to launch in end July 2017.

Penang

  • M Horizon in Southbay City. Comprising 237 units of service apartments and scheduled to launch in September 2017.
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