Mah Sing revises downwards full-year sales target to RM1.8b
KUALA LUMPUR: Mah Sing Group Bhd has revised downwards its fullyear sales target for this year to RM1.8 billion from RM2.3 billion previously due to challenging market conditions, coupled with uncertainties as a result of recent global and domestic developments.
The new target was made in addition to the lack of incentives for private developers in the 2017 Budget, the company said in a statement on Friday.
Mah Sing said for the nine months ended September 30, it achieved cumulative property sales of RM1.4 billion, or 77.8 per cent, of the sales target.
Its group managing director Tan Sri Leong Hoy Kum said the company’s move to revise the sales target was pragmatic as a response to the challenging market environment.
“We launched more projects in the third quarter, clocking up sales of around RM632.1million. We have diligently launched properties at the right prices in prime locations, targeting the correct market segment and the mass market, and there was keen buyer interest for our recent launches.
“While bookings remained high, the transition to sales and purchase agreement signings was protracted due to various global uncertainties and the difficulty of buyers in obtaining loans. Hence, we are taking a pragmatic view and revising our full-year sales target,” he said.
The group’s recent launches included Cerrado Residential Suites Tower A and B in Southville City, KL South, The Final Tower of Lakeville Residence, Taman Wahyu, Ferringhi Residence 2 in Penang, as well as The Greenway Double Storey Link Homes in Meridin East@Iskandar Malaysia in Johor.
For next year, Mah Sing expects the property market to remain flattish due to uncertainties in global and domestic economies.
“However, long-term demand for property in Malaysia will continue to be supported by a young population demographic, conducive interest rate, continued gross domestic product growth and urbanisation.
“Mah Sing is also in a good position to address the supply shortage of affordable homes catering to the middle income group with its diversified range of properties. The group will continue to focus on nimble response to market and quick asset turn,” it said.
In the third quarter ended September 30, Mah Sing’s net profit increased 8.9 per cent to RM91.89 million from RM84.4 million recorded a year ago due to positive performance of its property development and plastics businesses.
Its revenue in the same quarter decreased 4.9 per cent to RM732.37 million from RM770.74 million previously.
For the nine-month period, Mah Sing’s net profit grew 0.7 per cent to RM275.75 million from RM273.79 million. Its revenue eased 5.1 per cent to RM2.22 billion from RM2.34 billion.
Mah Sing shares closed 0.2 sen lower on Friday to RM1.52.
UBS has had a “neutral” recommendation on the stock with a target price of RM1.75.
Tan Sri Leong Hoy Kum