Mah Sing's land banking replenishment is supported by the group's healthy balance sheet, said Leong.
KUALA LUMPUR: Mah Sing Group Bhd (Mah Sing) is well on track to meet its full-year sales target of at least RM2.2bil, supported by strong sales momentum and a strategic focus on M Series affordable products.
The group achieved RM600.6mil new property sales in Q1 2023, which marks a 33.5% increase compared to RM450mil in Q1 2022.
“In the first quarter, the group was able to generate significant interest for its recently launched properties, with take-up rates ranging from 85% - 95%. The group’s active land banking replenishment is ongoing supported by a healthy balance sheet and its unwavering confidence in the fast turnaround delivery of its projects.
“We remain on an active lookout for strategic lands in Klang Valley, Penang and Johor for the development of residential and industrial properties. This strategy is underpinned by our healthy balance sheet and strong cash flow. In addition, our net gearing has improved further to 0.20x as of end March 2023,” said Mah Sing founder and group managing director Tan Sri Leong Hoy Kum.
Mah Sing's unbilled sales of about RM2.26bil provides future revenue visibility. The group continues to be nimble and focus on sales and project execution to ensure strong revenue and earnings momentum, steady liquidity and healthy cash flows.
In view of the significant volume of construction progress and property completions for 2023, the group expects further growth and stronger delivery of performance for FY 2023. Mah Sing is optimistic about the long-term prospects of its property development business and will continue to deliver value to its stakeholders.
Q1 2023 financial results
Meanwhile, Mah Sing recorded a strong revenue of RM643.5mil and profit before tax (PBT) of RM75.8mil in Q1 2023, compared to RM433.2mil and RM56mil in the same quarter preceding year, representing 48.5% and 35.2% improvement respectively.
The group’s property development segment recorded an operating profit of RM89.7mil on the back of revenue of RM514.8mil for the first quarter ended March 31, which were 20.4% and 61.2% higher respectively as compared to last year. The higher revenue and operating profit were mainly driven by higher property sales and progressive revenue recognition from ongoing construction progress.
The key contributing developments include M Vertica in Cheras, M Arisa in Setapak, M Luna in Kepong, Meridin East in Johor, M Oscar in Sri Petaling, M Adora in Wangsa Melawati and Southville City in KL South. Other projects which also contributed include M Senyum in Salak Tinggi, M Astra in Setapak, M Aruna and M Panora in Rawang, Southbay City and Ferringhi Residence in Penang, Sierra Perdana, Meridin @ Medini and Mah Sing i-Parc in Johor.
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