KUALA LUMPUR: Mah Sing Group Bhd's net profit jumped 47.6% to RM41.1mil for the first quarter ended March 31, due to higher profit contribution from its property development activities.
Its revenue for the quarter rose to RM311.7mil against RM238.3mil posted a year ago. Earnings per share rose to 4.95 sen for the quarter under review.
“The improved revenue and profit for the quarter is attributable to progressive recognition of development revenue and profit contribution from its poperty development activities carried out in Kuala Lumpur, Klang Valley, Penang and Johor Bahru,” Mah Sing said in the notes accompanying its financial results.
The developer added that its balance sheets remained healthy with net gearing ratio at 0.32 as at March 31.
“The group has a total of 22 on-going projects, and another seven new projects in the pipeline for continued earnings performance and growth in the near and medium term,” it said.
As at May 13, Mah Sing achieved RM975mil in sales, meeting 49% of its full year sales target of more than RM2bil. The group has unbilled sales of about RM1.6bil as at March 31.
“Our sales to date has been good because of strong response to all segments of our properties, as we have established a strong branding based on our track record of offering innovative, niche products after conducting in-depth market research. We are confident of equally strong demand for other new projects slated for launch this year,” group managing director cum group chief executive officer Tan Sri Leong Hoy Kum said in a statement.
Commenting on its prospects, Mah Sing was optimistic the positive sentiments for the property market would continue, riding on the favourable employment conditions and stable economic growth.
“Other key drivers that will continue to sustain and drive this sector will be our young population base, new household formation, high saving rates and good housing affordability due to a conducive financing environment. High impact projects like the MRT and Greater Kuala Lumpur will also drive property demand moving forward.
“Given the execution strengths which are unique to the group's fast turnaround business model the group is well placed for a strong performance for financial year 2011,” Mah Sing said.