KUALA LUMPUR: Mah Sing Group Bhd is confident to achieve RM1.5 billion sales target for the current financial year with key focus in the affordable segment.
The property developer has already secured approximately RM761.4 million sales accumulated for the period ended 30 June 2019 whereby 81 per cent of full year target sales is from residential properties below RM700,000.
Founder and group managing director Tan Sri Leong Hoy Kum said property an asset which remains as one of the safest form of investment and a good hedge against inflation.
"We believe properties in the affordable range and at
good locations are still seeing good demand. We are positive that our property projects will continue to gain traction with buyers driven by our strong track record and established brand presence in the market," he said in a statement today.
On earnings, for the six-month period ended 30 June 2019, the Group posted profit before tax of
RM142 million on the back of revenue of RM931.6 million.
On a quarterly basis, the Group recorded profit before tax of RM68 million and revenue of RM481.2 million.
On the property development front, revenue was RM748.2 million, whilst operating profit was RM130.9 million for the six-month period ended 30 June 2019.
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.
Higher revenue and profit contribution are expected from these projects when construction momentum starts to pick up.
Backed by a healthy balance sheet with cash and bank balances of RM1.3 billion, Mah Sing will continue its focus to acquire more prime land bank in the Klang Valley area.
In 2019, thus far, Mah Sing acquired 3 prime lands in Kuala Lumpur namely M Oscar (Off Kuchai Lama, next to Happy Gardens), M Luna (Kepong), and M Adora
(Wangsa Melawati), which all came with approved development order (DO) which allows rapid speed to market.
This has brought Mah Sing’s remaining landbank to 2,086 acres, which would yield a remaining gross development value (GDV), and unbilled sales of approximately
RM25.8 billion, providing steady earnings visibility for the Group.