PETALING JAYA: Mah Sing Group Bhd is confident of achieving its 2023 target of at least RM2.2 billion property sales as it has registered RM1.8 billion for the nine-month period ended Sept 30, 2023 (9M23), an increase of 14.4% compared with RM1.57 billion in the same period last year.
In Q3’23, the group achieved robust revenue and profit before tax (PBT) of RM644.3 million and RM76.1 million, respectively. For 9M’23, it recorded revenue and PBT of RM1.93 billion and RM226.8 million, respectively, marking a 17.3% and 15.6% improvement, compared with RM1.65 billion and RM196.2 million a year ago, Mah Sing said today.
As at Sept 30, 2023, the property development segment recorded an operating profit of RM259.7 million on the back of revenue of RM1.56 billion, which were 4.9% and 20.5% respectively higher than the operating profit and revenue recorded a year ago. The higher revenue and operating profit were mainly driven by higher property sales and progressive revenue recognition from ongoing construction progress. The manufacturing segment’s revenue grew slightly by 0.6% to RM328.1 million in the current period ended Sept 30, 2023 compared with RM326.1 million in the preceding year’s corresponding period.
Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said, “With our strong product leadership position in affordable homes and ongoing active launches of our products, we are confident of meeting our full-year sales target of minimum RM2.2 billion. Our highly differentiated product offering, M Series developments meets the market’s demand as shown by the impressive results of high take-up rates evident in our Q3’23 performance. Our unbilled sales have grown to RM2.42 billion, providing future revenue visibility for the group.”
The group will continue to pursue more acquisitions to develop affordable residential homes as well as to expand its industrial development portfolio. Further to the four new land acquisitions earlier in the year, the group entered into a joint venture collaboration in Sept 2023 to offer one-stop service solution for foreign businesses looking to set up manufacturing bases in Malaysia. The joint venture is expected to open up more opportunities for the group to fuel its industrial development portfolio growth.
During the quarter, Mah Sing rewarded and paid RM72.8 million to shareholders in the form of dividends, representing the 17th year of uninterrupted dividend payout record at minimum 40% of annual profit.
Including all new lands acquired to date, the group has a remaining landbank of 2,282 acres with a remaining GDV of RM26.3 billion.
Armed with a healthy cash and bank balance together with low 0.13 times net gearing ratio, the group is seeking to acquire more land, especially in Klang Valley, Johor and Penang.
