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Mah Sing plans new launches worth RM2.2b; profit drops 25% in FY18

KUALA LUMPUR (Feb 27): Mah Sing Group Bhd is planning new launches worth RM2.2 billion in gross development value (GDV) this year — unchanged from last year — notwithstanding a 25% year-on-year fall in net profit to RM271.60 million in the financial year ended Dec 31, 2018 (FY18).

Revenue for FY18 was also lower at RM2.2 billion against RM2.92 billion in FY17.

In the fourth quarter, the property developer registered a net profit of about RM66 million — down by a fourth from the year-ago quarter, while revenue was down by a third to RM514.60 million, from RM760.84 million before.

It has proposed a final dividend of 4.5 sen per share in respect of FY18 against 6.5 sen previously.

*Mah Sing foresees a time of recovery

In a press statement, Mah Sing's managing director Tan Sri Leong Hoy Kum said the group sees potential to expand its land bank given it has some RM1.22 billion of cash as at end-December 2018.

The group's RM2.2 billion worth of projects this year would continue to focus on affordable homes at strategic locations in the Klang Valley, Johor, and Penang.

"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," Leong added.

For FY18, Mah Sing's property development earnings were mainly supported by a higher proportion of new sales secured from new projects such as M Vertica in Cheras, M Centura in Sentul and M Aruna in Rawang. These projects are expected to contribute more significantly once past the initial stages of construction, the developer said.

Other earnings contributors were Southville City in KL South, Lakeville Residence in Jalan Kuching, D'sara Sentral in Sungai Buloh, M Residence and M Residence 2 in Rawang and M City in Jalan Ampang in Greater Kuala Lumpur (KL) and Klang Valley, Ferringhi Residence in Penang, The Meridin @Medini, Meridin East, Sierra Perdana in Johor and Sutera Avenue in Sabah.

Its plastics segment also continued to contribute positively to group earnings, with improvements in its revenue and operating profit, pursuant to the sales of moulds.

Mah Sing closed unchanged at RM1, valuing the company at RM2.43 billion.

— theedgemarkets.com

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