Mah Sing founder and group managing director Tan Sri Leong Hoy Kum
KUALA LUMPUR: Mah Sing Group Bhd
achieved RM992mil in new property sales in the first five months of 2024, putting it on track to meet its full-year sales target of at least RM2.5bil.
The developer said the impressive performance was driven by high demand in key markets, particularly in central and southern regions, and successful launches.
“Looking ahead, Mah Sing remains optimistic about achieving its sales target, driven by a compelling pipeline of projects strategically positioned in the affordably-priced housing segment. These projects align seamlessly with current market demands, particularly from the rapidly growing first-home market segment,” it said in a statement.
In the first quarter ended March 31, Mah Sing’s net profit rose 20% to RM60mil compared with RM50mil in the same quarter last year., translating into a higher earnings per share of 2.47 sen from 2.06 last year.
Revenue, however, dipped 13.2% to RM558.2mil versus RM643.4mil a year ago.
On the property development front, revenue was RM448.3mil while operating profit was RM88.9mil for the financial period ended March 31.
Mah Sing said this is mainly due to a higher proportion of new sales secured from new projects where contribution to revenue is expected to pick up once past the initial stages of construction.
“2024 has been a great start for us, with our property sales achieving RM992mil in the first five months. Our new launches, including the most recent M Zenya in Kepong, have been met with overwhelming demand, highlighting the strong market demand for our M Series affordable products.
“We are confident that we will meet our full-year sales target of at least RM2.5bil. Looking ahead, we are excited about the upcoming launches planned for the year, which will further solidify our position in the market and drive sustainable growth for the group," founder and group managing director Tan Sri Leong Hoy Kum said in a statement.
In 2024, Mah Sing acquired two new pieces of land: MSS Business Park in Sepang and M Tiara 2 landed link homes in Johor Bahru. Along with five other land acquisitions in 2023, these new projects are projected to add RM8.95bil to the group’s gross development value (GDV).
Meanwhile, Mah Sing has incoming vacant possession (VP) funds exceeding RM500mil this year, which will generate significant free cash flow.
The group also maintains a strong balance sheet, supported by the group’s focused and disciplined execution of projects with steady construction progress, which helped drive revenue, earnings, and cash flow momentum.
With a net gearing of 0.06 times and RM966mil in cash and bank balances, the group will continue to seek value-accretive land for sustainable growth.
The group recently paid a 4-cent dividend representing approximately a 48% payout, well above its minimum 40% payout policy.
Moving forward, Mah Sing will balance land banking for growth with rewarding shareholders.
“In view of the significant volume of construction progress and property completions for 2024, the group expects further growth and stronger delivery of performance for FY24. The group is optimistic of the long-term prospects of its property development business and will continue to deliver value to its stakeholders,” Mah Sing said.
“With an unbilled sales position of RM2.32bil and prompt project execution, the group expects strong earnings momentum for this financial year,” it added
