KUALA LUMPUR (Nov 28): Mah Sing Group Bhd’s net profit for the third quarter ended Sept 30, 2019 (3QFY19) declined 22.12% to RM50.02 million from RM64.23 million a year ago on lower revenue from its property development segment.
Revenue decreased 17.6% during the quarter to RM415.47 million from RM504.26 million previously, citing sales from new projects to contribute to both top and bottom line as construction progresses.
For the nine-month period, net profit also fell 24.4% to RM155.35 million from RM205.57 million, as revenue dipped 19.6% to RM1.35 billion from RM1.68 billion a year ago.
However, the group said it is nearing its 2019 sales target of RM1.5 billion, after registering RM1.14 billion in sales in the nine-month period ended Sept 30, 2019.
“We have always believed that properties in the affordable range and at good locations are still seeing good demand. The projects that we have recently launched or currently in the pipeline are all affordably priced with good accessibility and connectivity. This showcases our commitment in continuously providing quality affordable homes to home owners as 81% of our full-year target sales for 2019 is from residential properties below RM700,000,” said Mah Sing group managing director Tan Sri Leong Hoy Kum said in a statement yesterday.
It said the group’s balance sheet continues to remain healthy with cash and bank balances of approximately RM1 billion, which will help to replenish its landbank as it continues to focus on the affordable property segment.
“In line with our growth strategy, we are constantly on the lookout for more prime lands at strategic locations with attractive pricing points as it resonates with our aim to expand in areas with large population growth.
"Projects which are located within well-established surrounding neighbourhoods, equipped with ready amenities and easily accessible infrastructures, coupled with strategic access to highway connectivity will always be the driving factors for our products to be well received in the market amid the scarcity of prime land in Klang Valley today,” said Leong.
Looking ahead, Mah Sing said it has remaining landbank of 2,064 acres as of Sept 30, with remaining gross development value and unbilled sales of approximately RM25.5 billion.
It said this will provide steady earnings visibility for the group and sustain growth for the next eight to nine years.
Shares of Mah Sing settled 1.5 sen or 2.22% higher at 69 sen yesterday, giving it a market capitalisation of RM1.68 billion.