Group MD Leong Hoy Kum says the group’s property sales of RM1.69bil for the period were mainly due to new launches and ongoing projects under its M Series affordable development.
KUALA LUMPUR: Mah Sing Bhd recorded a 32% increase in property sales in the nine months to Sept 30, 2022 (9M22), which shored up the property developer’s revenue and bottom line for the period.
Its founder and group managing director Tan Sri Leong Hoy Kum said the group’s property sales of RM1.69bil for the period, as compared with RM1.28bil in 9M21, were mainly due to new launches and ongoing projects under its M Series affordable development.
“The strategic focus on M Series affordable developments in recent years has positioned the group well to capture the resilient first-time homebuyers’ market.
“We will maintain discipline in execution for continued momentum in revenue and earnings delivery, as well as free cash flow generation,” he said in a statement yesterday.
On future plans, Leong said Mah Sing plans to launch M Astra in Setapak by the fourth quarter of this year. Other upcoming developments to be launched are M Nova in Kepong, Phase 3 of M Senyum in Salak Tinggi, Phase 1B of M Panora in Rawang and Meridin East (Jasmine and Erica West) in Johor Baru.
“We believe that now is still a good time for first-time homebuyers to purchase, as buying property is the best hedge against inflation and our products are mainly for customers who are buying for their own stay,” he said.
Mah Sing posted a net profit of RM47.06mil in the third quarter ended Sept 30, 2022 (3Q22), up from RM40.17mil in the previous corresponding quarter.
Earnings per share (EPS) was 1.94 sen, up from 1.65 sen in 3Q21. Quarterly revenue jumped to RM671.12mil from RM364.57mil in 3Q21.
Mah Sing’s net profit for 9M22 increased to RM133.27mil, or 4.57 sen EPS, from RM120.85mil, or 3.86 sen EPS, in the 9M21, while revenue increased to RM1.65bil from RM1.22bil in 9M21.
By segment, Mah Sing’s property development business recorded an operating profit of RM247.5mil on the back of revenue of RM1.3bil, which represented increases of 30.8% and 41.3% year-on-year respectively.
Its manufacturing segment recorded revenue of RM326mil for the nine-month period as compared to RM268.1mil in 9M21, due to strong demand for plastic pallets and automotive parts.
Mah Sing’s focus on execution has ensured a strong revenue stream and steady liquidity and cash flow. On the strength of prompt project execution and vacant possessions, its balance sheet improved further, with net gearing at a new low of 0.27 times as of Sept 30, 2022.
Mah Sing has a remaining landbank of 1,916.73 acres with a gross development value of RM21.12bil.
