PETALING JAYA: Mah Sing Group Bhd, which posted a net profit of RM90.49mil in the second quarter ended June 30, has scaled back property launches and revised its sales target in view of the challenging market condition.

In the notes accompanying its financial results, the developer said the “operating environment in the short term was expected to stay challenging”. It added that market outlook had softened post the goods and services tax implementation and sentiment was further affected by, amongst others, the weakening ringgit.

“Responding to changing market conditions, the group has scaled back launches from RM3.4bil planned for the year to RM2bil, and revised its sales target for the year from RM3.4bil to RM2.3bil,” it said.

Nonetheless, it said the medium and long term prospects remained attractive.

It said they were supported by young demographics, favourable demand and supply condition for the right products in selected locations, healthy employment conditions and ongoing public transportation infrastructure projects.

“The company’s focus going forward is on further strengthening of business fundamentals, both operationally and financially, to position ourselves for opportunities as they arise, and the delivery of steady, sustainable performances over the longer term,” it said.

In the second quarter, Mah Sing’s revenue rose to RM780.48mil compared with RM705.01mil in the same corresponding quarter a year ago. Earnings per share for the quarter stood at 3.77 sen against 4.53 sen previously. In the first six months to June 30, Mah Sing’s net profit rose 10.8% to RM189.38mil on a 16.1% jump in revenue to RM1.56bil.

As at June 30, the company had a cash pile of approximately RM1.54bil. The strong balance sheets and net cash position favourably position the company for future opportunities as they arise and enhance our operating capacity to deal with unforeseen market changes.

“In a challenging environment, the company will continue to be disciplined and prudent in its business development decisions, and will emphasise a good balance between growth and stability,” Mah Sing said.

The company’s unbilled sales of RM4.8bil and the spread-out of new and matured development projects evenly throughout the project life cycle would drive recurring and stable delivery of cash flows, liquidity and earnings. The developer said the strong portfolio of projects within its landbank, with remaining gross development value amounting to RM26.4bil, provided growth visibility for at least the next six to eight years.