KUALA LUMPUR (Nov 27): Mah Sing Group Bhd, the country's second-largest property developer by sales value, posted a 4.9% increase in net profit to RM273.79 million or 11.02 sen a share for the nine months ended Sept 30, 2015 (9MFY15), from RM261.02 million or 13.52 sen a share in 9MFY14, on higher revenue from property development.
Revenue also rose 13.6% to RM2.34 billion in 9MFY15, from RM2.06 billion in 9MFY14.
Mah Sing attributed the improvement in 9MFY15 results to higher work progress and sales from its ongoing development projects, such as M City in Jalan Ampang, Icon City in Petaling Jaya, Southville [email protected] South, M Residence [email protected] and Garden Residence, [email protected] Residence and Garden Plaza in Cyberjaya.
Mah Sing said it achieved property sales of RM1.6 billion for 9MFY15, due to products that are in line with the current market demand, which is focused on affordability.
"As at Sept 30, 2015, a total of RM30.62 billion comprising unbilled sales of approximately RM4.75 billion, combined with remaining gross development value of RM25.87 billion, is expected to sustain the group's revenue growth over the next eight years," it added.
As at Sept 30, 2015, the group had a cash pile of RM1.3 billion and net gearing of 0.05 times.
Meanwhile, Mah Sing saw its third-quarter net profit fall 6.4%, mainly due to higher expenses incurred in the current quarter.
The property developer reported a net profit of RM84.4 milion or 2.74 sen per share for the three months ended Sept 30, 2015 (3QFY15), from RM90.17 million or 4.59 sen per share a year ago.
Revenue for 3QFY15, however, gained 8% to RM770.74 million, from RM713.55 million in 3QFY14, due to better performance from its property development and plastics segments, it told the stock exchange in a filing today.
Despite the challenging operating conditions amidst tight mortgage lending and cautious sentiments, Mah Sing said it remains confident of delivering sustainable performance for the financial year ending Dec 31, 2015 (FY15).
"Backed by a diversified portfolio of 35 ongoing projects that are mainly focusing in Greater KL and the Klang Valley and well spread-out throughout different stages of project lifecycle, the group is positioned to continue its earnings delivery," it said.
Mah Sing added that its total unbilled sales amounting to RM4.75 billion, provides liquidity and steady stream of near term cash flows.
In the pipeline to drive sales prospects, are new releases of affordable landed homes in Meridin East, Pasir Gudang, Johor (from RM350,000) and Cerrado serviced apartments in Southville City @ KL South (from RM388,000), it added.
Shares in Mah Sing fell two sen or 1.39% to close at RM1.42 as at midday break today, for a market capitalisation of RM3.42 billion. -- theedgemarkets.com
TOP PICKS BY EDGEPROP
Seri Mutiara Apartments, Bandar Baru Seri Alam