Mah Sing Q2 earnings at RM88.8mil

With the upcoming Budget 2017, Mah Sing in reiterating its wish list said that it hoped banks would consider relaxing loan approvals and offer the flexibility of 95% financing for first home buyers, 90% for second homes followed by 70% for those buying their third property.

KUALA LUMPUR: Mah Sing Group Bhd saw its net profit dipped 1.8% to RM88.8mil in the second quarter ended June 30, compared with RM90.49mil in the same period a year ago.

Its revenue for the period stood at RM773.89mil, down from RM780.48mil. Earnings per share for the quarter stood at 3.69 sen per share compared with 3.77 sen previously.

In the first six months to June 30, Mah Sing’s net profit was lower at RM183.85mil on revenue of RM1.48bil.

As at June 30, the group‘s cash and bank balances amounted to approximately RM895.3mil and net gearing ratio was 0.06 times.

The group has a remaining of 2,492 acres of undeveloped land with gross development value (GDV) worth approximately RM27.5bil. Including the unbilled sales of approximately RM4.2bil, the total RM31.7bil can support eight to nine years of revenue growth.

In a statement, Mah Sing said the group achieved cumulative property sales of approximately RM1.03bil for the seven-months ended July 31, 2016 due to products that are in line with the current market demand.  

It added that the primary focus was on products in the right locations, which are focused on affordability. Since 2010, the group has achieved consistent sales above a billion annually and maintaining its 2016 sales target of RM2.3bil.

Mah Sing said affordable homes still sees strong demand, evidenced by the 100% take up of 404 units of Cerrado Residential Suites (Tower A) with a starting price of RM357,000.

It also saw a high take up rate of 92% during the launch of 120 units of Lakeville Residence’s final tower. Both take up rates were recorded over their respective 2 day launches.

“As planned, we have intensified launches in the second half of 2016. The timing is right as sentiments have improved. Our focus has been built around ‘Luxury you can afford’ and we have had very positive results,” group managing director Tan Sri Leong Hoy Kum said in the statement.

He added that the group continued a slew of launches with its biggest township of Meridin East in Johor and the resort project of Ferringhi Residence 2 in August.  

“Both projects saw exemplary take ups; Greenway link homes in Meridin East Johor saw a 85% take up from 492 units launched, while Ferringhi Residence 2 saw a 84% take up from 120 units launched.  

“Tower B of Cerrado also saw overwhelming response. We are planning to launch the final tower of D’Sara Sentral on Sept 24 as well as Tower C and D of Cerrado Residential Suites towards the end of the year,” Leong said.

He said the overall buyers sentiment had lifted due to the interest rate cut from 3.25% to 3.0% by Bank Negara and demand was still strong for mass market range of properties in well-connected areas.

“We have the right product mix that is catered to the current market’s needs, hence we believe that we will continue to do well.  Currently, obtaining mortgage financing remains the biggest hurdle for many buyers.

“Property has proven to be the best hedge against inflation and we hope the banking fraternity will continue to support asset accretion by Malaysians,” Leong added.

To encourage ownerships of affordable homes, Mah Sing has teamed up with Bank Simpanan Nasional (BSN) under the Youth Housing Scheme for Cerrado Residential Suites and Greenway@Meridin East.

Mah Sing said the scheme offers young married couples 100% loans for property priced below RM500,000, and an additional 5% of Mortgage Reducing Term Assurance (MRTA) or Mortgage Reducing Term Takaful (MRTT). Buyers will also be given a RM200 per month government disbursements for 2 years and 50% stamp duty exemptions.

Supporting the market’s need, the group will continue to  focus within the Klang Valley, as 89% of Mah Sing’s planned residential launches priced below RM1mil, 68% priced below RM700,000 and 50% priced below RM500,000.