“Our focus is mainly in Greater Kuala Lumpur but we are also open to other high growth locations in Malaysia,” group managing director Tan Sri Leong Hoy Kum(pic) said in a statement yesterday. “Our cash pile and low net gearing will allow us to look out for potential land acquisitions,joint ventures and investments.”
KUALA LUMPUR: Mah Sing Group Bhd plans to use its RM923.8mil cash pile and healthy balance sheet to invest in new landbank acquisitions and joint venture opportunities.
“Our focus is mainly in Greater Kuala Lumpur but we are also open to other high growth locations in Malaysia,” group managing director Tan Sri Leong Hoy Kum said in a statement yesterday. “Our cash pile and low net gearing will allow us to look out for potential land acquisitions,joint ventures and investments.”
This is the first time Mah Sing is looking to replenish their landbank since 2015. It currently has about 2,492 acres of undeveloped land with gross development value (GDV) worth about RM27.5bil.
Mah Sing posted a net profit of RM361.4mil for the financial year ended Dec 31, 2016, which is 6.5% lower than the previous year - mainly due to a fair value gain on its RM29.5mil Star Avenue property investment in 2015 and the repurchase of RM315mil nominal value of redeemable convertible secured bonds (CB) at a purchase consideration of RM337.1mil last year.
Mah Sing has proposed a final dividend of 6.5 sen per share for the financial year. This translates into a dividend yield of about 4.5%.
Leong said 2017 will see the expected final stage billings on delivery of vacant possession of properties valued at about RM607mil, which would enhance the group’s cash position.
In 2017, the group will continue to deliver easily accessible, well planned projects with good concepts in strategic locations to meet market demand.
“As we enter into the new financial year, we will continue to adopt a strategic approach and phase out our launches. The focus will be on accessible homes, with 73% of our residential sales target price point at RM700,000 and below,” said Leong.
The government’s commitment in improving the infrastructure of the nation such as MRTs, LRT extensions and HSR will have multiplier effect on the economy and further improve access to developments, thus creating new demand.
Future sales pipeline include the new township Rawang, final tower of D’sara Central, Residensi Seri Wahyu in Lakeville Residence, Cerrado Block C and D in Southville City@KL South, landed link homes in Meridin East, Johor and serviced apartments in Southbay City, Penang.
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