Mah Sing says expanding landbank as 1Q revenue tops RM723 mil

KUALA LUMPUR (May 31): Mah Sing Group Bhd is expanding its landbank as the property developer plans some RM1.9 billion worth of launches in 2017. Affordable housing in Malaysia is a crucial focus for Mah Sing this year.  

In a statement today, Mah Sing group managing director Tan Sri Leong Hoy Kum said the company was targeting 73% of residential sales, priced below RM700,000.  

“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," Leong said.

Mah Sing issued its statement in conjunction with the announcement of its first quarter results today.

In a statement to Bursa Malaysia, Mah Sing said it posted a net profit of RM90.42 million for the first quarter ended March 31, 2017 (1QFY17), versus RM95.04 million a year earlier.

Revenue rose to RM723.54 million, from RM709.17 million in 1QFY16. Mah Sing said the group achieved property sales of approximately RM410.3 million as selling, marketing and administrative expenses rose.
 
"The group’s emphasis on project execution, backed by a disciplined cash management approach, is demonstrated by the healthy pace of delivery of new homes with RM523 million vacant possession billings achieved in 2016 and RM637 million expected in 2017.

"The group’s prospects remain positive, anchored by 35 ongoing projects and [the] remaining prime land banks of 902ha (2,255 acres) in multiple strategic locations, which provides good profit visibility for the group," Mah Sing said. — theedgemarkets.com

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