The group’s balance sheet continues to remain healthy with cash and bank balances of approximately RM1b
By S BIRRUNTHA / Pic By MUHD AMIN NAHARUL
MAH Sing Group Bhd has posted a pretax profit of RM211.9 million on the back of RM1.3 billion revenue for the third quarter ended on Sept 30, 2019 (3Q19).
On a quarterly basis, the group registered a pretax profit of RM69.9 million and revenue of RM415.5 million.
For its property development segment, the group’s revenue for the quarter was RM1.1 billion with an operating profit of RM189.3 million.
Mah Sing said in a statement yesterday that the RM1.1 billion revenue was attributed to the new sales that were secured from new projects where the contribution to revenue is expected to pick up once past the initial stages of construction.
“Revenue and profit contributions are expected to increase from these projects when construction momentum starts to pick up.
“The plastics segment continued to contribute positively to group performance by recording revenue growth of 10.2% to RM240.9 million in the current period,” it said.
The group added that development projects which contributed to its results include M Vertica in Cheras, Kuala Lumpur(KL); M Centura in Sentul, KL; M Aruna in Rawang, Selangor; Southville City in KL South and more.
Meanwhile, Mah Sing has also registered RM1.1 billion sales in the 3Q19 and sustaining its momentum to achieve a sales target of RM1.5 billion for 2019.
The group’s balance sheet continues to remain healthy with cash and bank balances of approximately RM1 billion and it will continue replenishing its prime land plots with a key focus on affordable property projects especially in the Klang Valley, Johor and Penang, while exploring joint-venture prospects.
Mah Sing founder and group MD Tan Sri Leong Hoy Kum (picture) stated his optimism that the group’s projects will continue to gain positive responses.
“As a market-driven developer, we understand the market needs and are constantly adapting our strategies to suit the demand.
“We have always believed that properties in the affordable range and at good locations are still seeing good demand,” he said.
He added that the projects the group recently launched as well as in the pipeline are all affordably priced with good accessibility and connectivity.
“This showcases our commitment to continue providing quality affordable homes to the homeowners as 81% of our full-year target sales for 2019 is from residential properties below RM700,000,” he said.
In 2019, the group has acquired three plots of prime land, with the second acquisition (M Luna, KL North) announced in July 2019 and third acquisition (M Adora, Wangsa Melawati, KL) in August 2019.
The first project from Mah Sing’s 2019 land acquisition trail, M Oscar (Off Kuchai Lama, KL) was acquired in March 2019 and within seven months, it was successfully launched in October 2019.
Its first phase comprising 200 units recorded 100% take-up during its initial launch.
The group said all the new land plots are equipped with an approved development order, which allows it to leverage on its fast turnaround business model to launch the new projects swiftly.
Apart from the new projects from this year’s land acquisitions, Mah Sing also recently launched M Arisa’s new sales gallery, featuring its second affordable residential development in Sentul.
M Arisa’s sales gallery opening continues to expand Mah Sing’s footprint in Sentul, following its first successful project, M Centura, which garnered overwhelming response with over 90% take-up rate, within two years of its launch.
* The article has been edited and rectified for clarity and correctness.