Mah Sing
KUALA LUMPUR: Mah Sing Group Bhd
's earnings rose to RM90.39mil in the second quarter ended June 30, 2017 from RM88.82mil a year ago and it chalked up property sales of about RM819.3mil in the January-June period.
The property company announced on Monday it is looking forward to launch more properties below RM500,000 in the second half of 2017 to meet current market demand.
Mah Sing's revenue was RM727.14mil compared with RM773.89mil a year ago. Earnings per share were 3.75 sen compared with 3.69 sen.
For the first half, its earnings were RM180.80mil on the back of revenue of RM1.45bil which were comparable with the previous corresponing period's earnings of RM183.85mil on revenue of RM1.48bil.
“The group achieved property sales of approximately RM819.3mil for the six-months ended June 30, 2017 and looks forward to launching more properties below RM500,000 in 2H2017 to meet current market demand,” it said.
Mah Sing said the projects which contributed to the group's results in Greater KL and Klang Valley included Southville City in KL South, Lakeville Residence in Jalan Kuching, D’sara Sentral in Sungai Buloh, M Residence and M Residence 2 in Rawang, M City in Jalan Ampang, Icon City in Petaling Jaya, Garden Residence, Clover@Garden Residence and Garden Plaza in Cyberjaya, Kinrara Residence in Puchong, Icon Residence in Mont' Kiara and Star Avenue in Sungai Buloh.
Projects from other regions that also contributed to the group’s results include Penang’s Southbay City, Legenda@Southbay and Ferringhi Residence, Johor’s The Meridin@Medini, Meridin East, Sierra Perdana, Mah Sing i-Parc@Tanjung Pelepas and Austin Perdana as well as Sutera Avenue in Kota Kinabalu, Sabah.
Commenting on the plastics segment, it said continued to contribute positively to group performance.
“Revenue grew 19.4% from approximately RM123.8mil to RM147.9mil and operating profits improved 13.1% from RM7.1mi to RM8.1mil due to higher sales of pallets, electronic parts and waste bins in 1H2017,” it said.
Mah Sing’s group managing director Tan Sri Leong Hoy Kum said the group’s net cash position as at June 30, 2017 provided opportunities to pursue more land banking particularly within the Klang Valley with a focus on products below RM500,000.
“We are on the lookout for more strategic land banks, especially in Klang Valley. In 2017 alone, the Group acquired 4 news lands, 3 in Klang Valley and 1 in Bukit Mertajam, Penang which have a combined GDV of RM4.3bil,” he said.
“With our healthy balance sheet, we are in prime position to acquire more lands which meet our evaluation. Our target is to increase our land banks in the Klang Valley to 75% from our current 67% in the next two years,” he said.
According to NAPIC’s statistics, there is an insufficient supply of new houses compared to the increase in households. Between 2012 and 2014, annual completion of new houses was 85,000 units compared to an average of 118,000 new household formations.
“Our focus on developing affordable housing will be able to address this market need.
“The group currently has a remaining of approximately 2,163 acres of undeveloped land with approximately remaining gross development value (RGDV) and unbilled sales of RM29.5bil which can support the group’s revenue and earnings growth for the next eight years,” he said.
Upcoming launches in Greater Kuala Lumpur include M Vertica, Cheras’s residential suites with built ups from 850 sq ft indicatively priced from RM450,000, M Centura, Sentul’s residential suites with built ups from 650 sq ft indicatively priced from RM326,000, new development in Southville City@KL South’s service apartments with built ups from 888 sq ft indicatively priced from RM399,000 and M Aruna, new Rawang township’s 2-storey link homes with built ups from 1,680 sq ft indicatively priced from RM550,000.
More upcoming property launches in Penang include M Vista@Southbay’s residential suites with built ups from 536 sq ft indicatively priced from RM330,000 and a new industrial park in Bukit Mertajam, which will use the award-winning iParc concept to offer multi-functional industrial spaces and will comprise a mix of shop offices and light industrial factories.
Phase 2 of Fern in Meridin East, Johor comprising two-storey link homes with built ups from 1,622sq ft is also headed for a launch in Q4 2017. These planned launches in 2H2017 will be part of the projects that drive the sales target of a minimum RM1.8bil for 2017.
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