KUALA LUMPUR: MAH SING GROUP BHD posted a net profit of RM50.01mil for the third quarter ended Sept 30 on the back of RM415.47mil revenue.
In a filing with Bursa Malaysia, the property developer said the net profit fell 22.1% to RM50.01mil from RM64.23mil a year ago mainly dragged by the property development segment.
The group’s revenue also fell 17.6% to RM415.47mil compared with RM504.25mil in the corresponding period a year ago.
Mah Sing’s property development segment recorded revenue of RM1.1bil for the period ended Sept 30, compared to RM1.4bil a year ago, while posting an operating profit of RM189.3mil compared with RM244.8mil in the corresponding period a year ago.
“This is mainly attributable to a higher proportion of new sales secured from new projects where contribution to revenue is expected to pick up once past the initial stages of construction, ” it said.
However, the property developer expected revenue and profit contribution to increase from on-going projects when construction momentum starts to pick up.
The development projects which contributed to the group’s results included M Vertica, M Centura, M Aruna, Southville City, Lakeville Residence, Damansara Sentral, M City, Ferringhi Residence and The Meridin@Medini, Meridin East and Sierra Perdana as well as M Residence and M Residence 2.
In a statement, Mah Sing said it is on track to achieve RM1.5bil sales target for this year, adding that it has already recorded around RM1.136bil sales in the nine-month period ended Sept 30.
“The group is positive that its property projects will continue to gain traction from buyers driven by its projects that are located in strategic location and offering the right products that are at affordable price points and in line with market demand.
“The group’s strong track record and established brand presence will also enhance buyers’ confidence, ” it noted.
As of Sept 30, the group has remaining land bank of 2,064 acres, with gross development value and unbilled sales of RM25.5bil. “This will provide steady earnings visibility for the group, which can sustain its growth for next eight to nine years, ” Mah Sing noted.
Given the healthy balance sheet of RM1bil, Mah Sing targets to increase its land banks especially in Klang Valley for the affordable segment.
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