Mah Sing’s Founder and Group Managing Director, Tan Sri Dato’ Sri Leong Hoy Kum. Image from: Mah Sing
Leading Malaysian developer Mah Sing achieved their sales target of RM1.5 billion for 2019, which its sales was driven mainly by its affordable home developments. They have set a sales target of RM1.6 billion for 2020 with their main drivers to be homes below RM700,000.
In line with this and the Group’s tagline of ‘Reinvent Spaces. Enhance Life,’ Mah Sing has also recently launched their ‘Eazy to Own’ campaign targeted towards first time home buyers looking for a great yet affordable home. The campaign offers an easy entry with low upfront costs and great incentives to buyers.
With a strong balance sheet, Mah Sing will also be looking to purchase more landbanks should the opportunity arise, while exploring joint venture prospects. As of the year ending 31 December 2019, the Group has a healthy cash and bank balance of approximately RM1 billion.
In a statement from the Group, Mah Sing’s Founder and Group Managing Director, Tan Sri Dato’ Sri Leong Hoy Kum said, “We intend to leverage on our healthy cash and bank balances of approximately RM1billion as at 31 December 2019 to source for new, strategically located landbanks that fits our business model, whist exploring any joint venture opportunities.”
Mah Sing recorded about RM270 million in profit before tax for the financial year ending 2019, and a revenue of approximately RM1.8 billion. On a quarterly basis, the recorded profit and revenue stood at approximately RM58 million and RM443 million respectively for the quarter ended 31 December 2019.
The revenue and operating profit from the property front stood at about RM1.4 billion and RM254.6 million respectively for the financial year ended 31 December 2019. The numbers were mainly contributed by sales from their new projects, where the revenue is expected to further increase upon the completion of the initial stages of the project, and as the construction momentum increases.
Of the projects that contributed a big portion to the results were M Vertica in Cheras, M Centura in Sentul, Southville City in KL South, Lakeville Residence in Jalan Kuching, Meridin East and Sierra Perdana in Johor. Also contributing to the pool were D'sara Sentral in Sungai Buloh, M Aruna in Rawang, Ferringhi Residence in Penang, Meridin @ Medini and Mah Sing i-Parc in Johor.
Tan Sri Dato’ Sri Leong Hoy Kum, said, “Majority of the total residential sales achieved for 2019 were from products priced below RM700,000, which serves as an impetus for us to continue to tap into this segment. Our quality product offerings are also seeing rising interest from overseas buyers in view of Malaysia’s attractive unique value proposition as a destination for retirement and education purposes as well as real estate investments business.”
And in reference to the Group’s increased sales target to RM1.6 billion in 2020, Tan Sri Dato’ Sri Leong Hoy Kum further elaborated, “We have set a minimum RM1.6 billion sales target this year, with 84% of targeted residential sales priced below RM700,000. In line with our growth strategy, we will continue to adopt our resilient strategy of quick turnaround business model to acquire prime lands at strategic locations, whilst being nimble and flexible to change.
“2020 is going to be another exciting year for Mah Sing, as our upcoming launches will still be in the affordable segment. In view of the rising appetite for mass market housing, we are confident to achieve our minimum RM1.6billion target sales this year.”
Mah Sing is looking to reward their shareholders with a proposed final dividend of 3.35sen per ordinary share for the financial year ended 31 December 2019, subject to shareholders’ approval in the upcoming Annual General Meeting. The Group has been consistent in paying out dividend rates of at least 40% of net profit over the last 14 years.
(2 March 2020)
