Mah Sing posts higher FY5 earnings of RM386.6m

The Mah Sing Group booth at Star Property Fair 2016 in Alor Setar last month attracted a large crowd.

KUALA LUMPUR: Property company Mah Sing Group Bhd’s posted a stronger set of earnings of RM386.67mil in the financial year ended Dec 31, 2015 and achieved cumulative property sales of RM2.3bil.

It said on Friday as at Dec 31, 2015, a total of RM32.87bil comprising unbilled sales of RM4.75bil combined with remaining gross development value (GDV) of  RM28.12bil would support eight to nine years of revenue growth.

“GDV for the 428-acre freehold township of SouthvilleCity@KLSouth has been enhanced to RM11.1bil from the new master plan to unlock greater value and enhancement of value proposition,” it said.

Mah Sing said it was able to meet its 2015 sales target of RM2.3bil by offering products in line with market demand, namely beginner homes for the mass market and also upgrader homes in selected locations.

“The group’s strategy of targeting mainly in the Klang Valley and products priced below RM1million to provide more acquirable housing have been instrumental in the strong sales figures,” it said.

It added that it would retain the same sales target of RM2.3bil for 2016 by focusing on end-user demand for beginner homes.  

Mah Sing’s revenue for FY15 was up 7% to RM3.108bil from RM2.904bil a year ago.  Its earnings rose 8.5% to RM386.67mil from RM356.49mil.

“For FY15, revenue from property development was approximately RM2.8bil, marking near to 7.9% improvement as compared to approximately RM2.6bil achieved last year. 

“Operating profit also increased by 2.0% from approximately RM449.1mil to approximately RM457.9mil. 

In the fourth quarter of FY15, its earnings increased by a strong 18.2% to RM112.89mil from RM95.48mil a year ago. This was despite slower revenue of RM773.14mil compared with RM843.95mil.

Earnings per share were 4.69 sen compared with 4.84 sen. It announced a dividend of 6.5 sen a share.