Mah Sing founder and group managing director Tan Sri Leong Hoy Kum.
PETALING JAYA: Mah Sing Group Bhd
expects the residential property segment, as well as emerging opportunities in industrial developments and data centres, to bolster earnings in 2025.
Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said the group entered the year with a strong unbilled sales pipeline of RM2.77bil, low net gearing of 0.22 times and cash and bank balances of RM747mil (as of Sept 30, 2024), which will ensure financial resilience and robust landbanking capability.
“Our high unbilled sales will sustain earnings growth, while our fast turnaround strategy reinvests cash flow into land acquisitions and expansion, delivering affordably priced homes for a resilient market.
“With an 18-year uninterrupted dividend record and a minimum 40% payout policy, we balance growth with shareholder returns,” he told StarBiz.
Mah Sing is principally involved in property development, the manufacture of high-tech plastics in Malaysia and Indonesia, as well as the manufacture and trading of gloves and related healthcare products.
The group’s residential property segment comprises its M series (affordable housing) and M Grand series (premium homes).
Leong said the residential property market is expected to remain resilient in 2025, driven by strong local employment conditions, wage growth for civil servants and the flexible Employees Provident Fund Account 3 initiative.
“Affordable housing will continue to be a key driver, with Mah Sing’s M-Series catering to first-time buyers and middle-income groups, while the upgraded M-Series will appeal to upgraders, foreign buyers and investors with premium units starting at RM700,000.
“Additionally, the Budget 2025 tax incentives, major infrastructure projects (Johor-Singapore Rapid Transit System link, Penang LRT and Klang Valley MRT 3) and the Johor-Singapore Special Economic Zone initiative are expected to further boost localised demand, reinforcing the positive outlook for the property sector,” he said.
Besides on time delivery of the group’s products, Leong said Mah Sing’s projects generally do well due to the company’s commitment to meeting market demand with strategically located and well-designed offerings.
“Each project is designed with a signature lifestyle concept blending innovative design, affordability, and a commitment to environmental stewardship.
“The group’s ability to deliver homes at attractive price points while maintaining design and quality excellence ensures its competitiveness.”
For 2025, Leong said the group will be launching products from both new and existing projects.
New launches from the group’s existing projects include M Aspira (Taman Desa), Residensi Suria Madani (Taman Desa), M Tiara 1 (Johor Baru), Meridin East (Johor Baru), M Azura (Setapak), M Terra (Puchong), M Zenya (Kepong), M Nova (Kepong) and M Sinar (Southville City).
Meanwhile, launches from new projects will include M Aria (Sentul), M Legasi (Semenyih), M Aurora (Old Klang Road), M Tiara 2 (Johor Baru), M Grand Minori (Johor Baru) and Southbay City (Penang).
In the third quarter ended Sept 30, 2024, Mah Sing’s net profit rose 20% to RM60mil, or earnings per share of 2.35 sen compared with RM50mil, or 2.06 sen in the year-ago quarter.
Revenue, however, dipped to RM639.3mil against RM644.3mil achieved last year.
For the first nine months to Sept 30, the developer posted a net profit of RM180.3mil, up 19.8% from RM150.5mil while revenue fell 8.1% to RM1.78bil from RM1.93bil a year ago.
The company achieved property sales of RM1.85bil in the first nine months of 2024, keeping it on course to reach its RM2.5bil sales target for the year.
Going forward, Leong said Mah Sing remains committed to acquiring more parcels of land in the Klang Valley, Johor Baru and Penang, which will allow the group to expand both its residential and industrial portfolios.
“Mah Sing acquired six parcels of land with a total gross development value (GDV) of approximately RM5.8bil in 2024, of which three were in Johor, contributing RM3.41bil in GDV.
“This follows five land acquisitions in 2023, which yielded RM5.5bil in GDV.”
According to Leong, acquisitions in 2024 included the M Grand Minori, a project featuring premium serviced apartments and retail units that is located just 3km from the Johor-Singapore Rapid Transit System link.
“Mah Sing has been operating in Johor since 2000. Many research houses are favourable about the company for its exposure to the affordable property market and expanding footprint in Johor.
“This positions Mah Sing well to capitalise on the transformative opportunities presented by the Johor-Singapore Special Economic Zone,” he said.
Additionally, Mah Sing acquired 2.78 acres of prime freehold land in Sentul, Kuala Lumpur for M Aria in January 2025.
Leong said the acquisition was aimed at meeting the growing demand for well-located, thoughtfully designed homes within a mature and accessible area.
“It is the group’s third piece of land in Sentul following the success of M Centura and M Arisa. M Aria is planned for apartments with an estimated GDV of RM283mil.
“Research houses viewed the acquisition positively due to its land cost to GDV ratio, proximity to public transportation and strong demand for affordable properties,” said Leong.
Separately, Leong noted that as digital infrastructure continues to expand at an unprecedented pace, he said Malaysia remains a key destination for data centers, thanks to its ample power and water resources, cost efficiency and well-developed infrastructure.
“Recognising this potential, Mah Sing is strengthening its position in the data center sector to generate long-term recurring income.”
Leong said the Mah Sing DC Hub@Southville City is set to become a key data center hub, featuring a minimum power capacity of 500 megawatts (MW) Bridge Data Centres as a strategic partner.
“Additionally, Mah Sing is exploring a 42-acre site in Meridin East, Johor Baru, for a potential 300MW power capacity data centre, reinforcing our commitment to high-growth digital assets,” he said.
