Mah Sing posts resilient 1Q2026 with RM1 bil cash, RM978 mil new sales and highest dividend payout in two decades

PETALING JAYA (May 29): Mah Sing Group Bhd reported a resilient start to 2026, backed by a strong cash position of about RM1 billion and steady sales momentum, while delivering its highest dividend payout ratio in more than 20 years.

For the first quarter ended March 31, 2026 (1Q2026), the group posted profit after tax (PAT) of RM68.1 million, up 3% year-on-year. 

Property development revenue came in at RM460.6 million compared to RM521.0 million in the previous year’s corresponding quarter, while operating profit was RM108.6 million as compared to RM103.4 million previously, which the group said was supported by a higher proportion of sales secured from new projects, where revenue contribution is expected to pick up as construction progresses beyond the initial stages. 

The group also said operating profit was strengthened by the finalisation of construction costs for certain contracts nearing completion.

Mah Sing said it secured RM978 million in new property sales in the first five months of 2026, putting the group on track to pursue its full-year sales target of RM2.76 billion. 

The performance is underpinned by sustained domestic demand in the affordable and mid-market segments, as well as continued take-up at its M Series developments, including recent launches such as M Aria in Sentul and M Aurora in Old Klang Road.

The group highlighted an estimated RM2.06 billion pipeline of upcoming residential and industrial launches to drive growth. Planned launches include M Mira in Setapak, M Hana in Puchong, M Amaya and M Cora in Penang, and M Tiara 2 and MS Industrial Park @ Kulai in Johor, alongside new phases of ongoing projects such as M Legasi in Semenyih, M Sinar Tower B in Southville City, Bangi, M Grand Minori and Meridin East in Johor.

Beyond the M Series, Mah Sing said it is adopting a market-driven approach tailored to each location. In prime city-centre areas, such as the Corus Hotel site in Kuala Lumpur, the group plans luxury developments aimed at both local and foreign buyers, while continuing to unlock value from its premium landbank.

As at March 31, 2026, Mah Sing’s balance sheet remained healthy, with cash, bank balances and short-term fund investments totalling around RM1 billion and net gearing at 0.39 times. The group expects its gearing to improve further, with more than RM430 million in vacant possession (VP) funds anticipated over the coming months. 

On May 26, 2026, Mah Sing paid a dividend of about RM128 million, representing a payout ratio close to 50%, above its minimum dividend policy of 40% and the highest in two decades.

Mah Sing’s founder and group managing director Tan Sri Leong Hoy Kum said the group remains focused on building a “resilient and future-ready business” through disciplined execution, strong financial management and sustainable growth strategies. 

The group also continues to pursue strategic landbanking to support its development pipeline and future growth.

Disciplined and timely project execution continued to support revenue and cash flow. The group recently delivered vacant possession of M Astra in Setapak, 15 months ahead of schedule. The project achieved an 89% score under the Quality Assessment System in Construction (QLASSIC), which Mah Sing said is the highest recorded for a high-rise development in Malaysia. 

Upcoming completions in 2026 include M Nova in Kepong; Phase 3A and 3B landed homes at M Senyum in Salak Tinggi; Phase 2 of M Panora in Rawang; and Parcels 4A1 and 4A2 of Meridin East in Johor Bahru, which collectively are expected to generate more than RM430 million in VP funds.

Key earnings contributors for the quarter included M Nova and M Zenya in Kepong; M Astra in Setapak; M Legasi in Semenyih; M Senyum in Salak Tinggi; and Meridin East, M Tiara and M Minori in Johor Bahru. Other contributing projects were M Azura in Setapak; M Aspira in Taman Desa; M Terra in Puchong; Southville City in Bangi; and M Panora in Rawang.

Mah Sing also launched the “Mah Sing 1-2-3 Campaign”, a homeownership programme running from May 18 to Oct 31, 2026, aimed at easing ownership and adding value for buyers across 12 participating projects in the Klang Valley, Johor and Penang. 

The campaign offers purchasers three incentives with a single purchase: a one-year homeownership booster, up to two years of free maintenance fees, and a RM3,000 gold coin reward for eligible units, subject to terms and conditions.

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