Mah Sing surpasses FY11 sales target of RM2b

KUALA LUMPUR (Nov 22): Mah Sing Group Bhd's profits for 3QFY11 ended Sept 30 surged 45.64% to RM43.22 million or 5.2 sen a share, up from RM29.68 million in the corresponding period last year.

Profit was driven by stronger revenue which rose 48.41% to RM420.7 million up from RM283.46 million in the same quarter last year.

For the cumulative nine-month period ended Sept 30, the group has racked up RM1.15 billion in revenue, a 41.65% improvement from the same period in 2010. Profit has likewise increased 47.05% to RM127.52 million or 15.34 sen a share up, from RM86.72 million previously.

"We have surpassed our FY11 full-year sales target of RM2 billion by achieving approximately RM2.04 billion sales as at Nov 15, 2011," said Tan Sri Leong Hoy Kum group managing director and chief executive of Mah Sing.

"We also have very strong earnings visibility, with unbilled sales of approximately RM2.14 billion as at Sept 30, 2011. This is more than twice the revenue we recognised from property development for the whole of FY10," he said.

The group reports unbilled locked in sales plus remaining gross development value (GDV) of an estimated RM15 billion which should last five to seven years.

Mah Sing said it expects an increase in demand for affordable properties next year and the group's launch pipeline in 2012 will include several projects offering residential and commercial properties in the range of RM500,000 onwards.

The projects will include new phases in existing projects like Icon City (Petaling Jaya), M City (Jalan Ampang, Kuala Lumpur), and Garden Plaza (Cyberjaya) as well as new projects like M Sentral (Kuala Lumpur) and M [email protected]

Mah Sing's net assets per share have risen to RM1.24 as at Sept 30 up from RM1.10 as at the end of the last year. It reported a cash pile of almost RM600 million, a healthy war chest which will allow the group to continue its aggressive expansion strategy. As at Sept 30, Mah Sing's total borrowings included a term loan of RM725.46 million and redeemable convertible bonds of RM269.04 million.

Thus far in 2011, Mah Sing has embarked on three land deals that will contribute additional combined GDV of RM2.46 billion. The most recent proposed acquisition was in October, the purchase of 226 acres of freehold land in Rawang for the M [email protected] project that will contribute RM948 million in estimated GDV to the group.

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