Mah Sing sets higher sales target for 2024

PETALING JAYA: Mah Sing Group Bhd has set a higher sales target of a minimum of Rm2.5bil for 2024, underpinned by its pipeline of projects that are strategically positioned in the affordably priced housing segment.

For the financial year ended Dec 31, 2023 (FY23), the group achieved new property sales of Rm2.26bil, a 13% increase compared to Rm2bil (excluding land sales of Rm115mil) in 2022 and the highest property sales recorded since 2016.

In a statement, the property group said this aligned seamlessly with current market demand, particularly from the rapidly growing first-home market.

“Supported by unbilled sales of Rm2.33bil and a strategic emphasis on fast-track project completions, the group anticipates a stronger financial performance in 2024.

“The momentum gained in 2023, coupled with prudent strategies and a diversified project portfolio, positions the group for continued success in the upcoming financial year,” it said in a statement.

For the fourth quarter ended Dec 31, 2023, Mah Sing’s net profit rose to Rm64.74mil from Rm46.78mil in the previous corresponding period, while revenue stood at Rm671.28mil against Rm670.87mil a year earlier.

Basic earnings per share stood at 2.67 sen versus 1.93 sen previously.

For FY23, Mah Sing’s net profit jumped to Rm215.29mil from Rm180.05mil in the previous corresponding period, while revenue improved to Rm2.6bil from Rm2.32bil previously.

Mah Sing said prudent capital management had been instrumental in maintaining a robust balance sheet and ample liquidity, resulting in a year-end cash and bank balances and investment in shortterm funds of approximately Rm981.3mil, as well as a record low net gearing of 0.08 times as at Dec 31, 2023.

“Since 2023, the group acquired six new plots of land with a substantial potential gross development value (GDV) of approximately Rm6.23bil.

“These plots of land expanded the group’s M Series development portfolio, including M Terra and M Hana in Puchong, M Tiara in Johor, M Legasi in Semenyih, M Zenya in Kepong, and M Azura in Setapak.”

Mah Sing said a significant addition to this strategic move is the acquisition of a new industrial land in Sepang named Mah Sing Business Park, boasting a potential GDV of up to Rm2bil for the entire 561.65 acres (Rm728mil for the immediate 185 acres).

“In line with the group’s agile and quick-turnaround business model, the group plans to launch all the new developments by the end of 2024, anticipating early contributions from the newly acquired industrial land.”

Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said the group’s flagship M Series residential developments have solidified the company’s market share in the domestic residential market, positioning it as a leader in midrange affordably priced housing in the Greater Kuala Lumpur city centre and suburban areas.

“The success of our M Series is attributed to a proven formula, combining attractive price point, good quality, and comprehensive lifestyle amenities.

“Mah Sing has a good track record with industrial projects and we have the right partners, network and design know-how.

“We anticipate a heightened contribution from the industrial developments going forward, complementing our focus on residential developments.”

Mah Sing also declared a first and final dividend of four sen per ordinary share for the financial year ended Dec 31, 2023, representing a 45% payout.

The group has been consistent in paying dividend rates of at least 40% over the last 18 years.