Mah Sing cuts 2020 sales target to RM1.1b

KUALA LUMPUR (Aug 28): Anticipating a longer time needed to convert existing bookings to sales, Mah Sing Group Berhad (Mah Sing) revised its year 2020 sales target to RM1.1 billion, from RM1.6 billion previously.

In a press statement today, the developer said although there was a jump in mortgage loan applications in June, the approval rate deteriorated to 24.6% compared to 32.6% in May 2020. This was primarily due to banks becoming more stringent in approving loans amid weak macroeconomic indicators.

Mah Sing founder and group managing director Tan Sri Leong Hoy Kum (pictured) stressed that the company is currently focused on converting the RM1.6 billion bookings into sales as well as clearing the existing stocks and to catch up with the construction progress of existing projects.

“Recently, we have successfully delivered vacant possession of towers C and D of our Lakeville Residence at Taman Wahyu and tower A and B of our Cerrado at Southville City @ KL South, Bangi,” said Leong in the statement.

The developer has successfully launched all three land bought in 2019. As at June 30, 2020, it has a remaining landbank of 2,005 acres with an estimated combined gross development value and unbilled sales of about RM24.64 billion, which is able to provide earnings visibility for at least eight years.

For the rest of 2020, the developer targets to launch more projects in the affordable segment such as Carya in M Aruna, Rawang, remaining blocks of M Vertica in Cheras and Ferringhi Residences 2 in Penang as well as Acacia, Jasmine 1 and 3 link homes in Meridin East, Johor Bahru.

“The mid to long-term outlook remains positive supported by strong fundamental demand for property due to the young demography and strong household formation which outstrips annual supply,” Leong said.

Meanwhile, Mah Sing also announced that the company has recorded profit before tax of RM65.6 million in the first half of its financial year ended June 30, 2020 (1H20). Revenue stood at RM669.8 million in the six months.

In 1H FY20, the developer gained property sales of about RM418.6 million, with another RM1.6 billion sales bookings on hand.

As at June 30, 2020, the balance sheet remained healthy with cash and bank balances of approximately RM1.13billion.

In 2Q20, the company saw a profit before tax of RM22.4 million and a revenue of RM298.6 million.

Mah Sing also declared a dividend of 3.35 sen per ordinary share in respect of the financial year ended December 31, 2019.

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