KUALA LUMPUR (Nov 29): Mah Sing Group Bhd's net profit rose to RM92.31 million in the third quarter ended Sept 30, 2017 (3QFY17), from RM91.89 million a year ago, on higher other income and lower selling and marketing expenses.

Earnings per share was higher at 3.07 sen, from 3.05 sen in 3QFY16.

Quarterly revenue slipped 3.8% to RM704.26 million in 3QFY17, from RM732.37 million a year earlier.

For the cumulative nine months (9MFY17), Mah Sing posted a net profit of RM273.12 million, down from RM275.75 million a year ago, mainly due to higher administrative and other expenses.

Revenue also came in lower at RM2.15 billion, compared with RM2.22 billion in 9MFY16, as certain development phases within the Southville City project were at tail end.

In a filing with Bursa Malaysia today, Mah Sing said its plastics segment continued to contribute positively to the group's performance in 9MFY17, posting a 20.2% year-on-year increase in operating profit to RM12.4 million, on higher sales of pallet.

On prospects for the current financial year ending Dec 31, 2017 (FY17), Mah Sing said with the group’s strong branding and attractive product price points below the RM500,000 threshold, it is in good position to meet the strong current market demand for affordable housing and is in line with the government's broad objective to enable everyone to own a home.

"The group’s healthy balance sheet and cash balances as at Sept 30, 2017 provide strong opportunities for the group to lock in more land and/or to explore joint ventures, with a focus on affordable housing projects within the Klang Valley," the filing added.

In a separate statement, Mah Sing said it is on track to achieve the RM1.8 billion sales target for 2017. For 9MFY17, it has achieved property sales of RM1.26 billion. 

For 4QFY17, its planned launches amounts to RM1 billion, bringing its total 2017 planned launches to RM2.3 billion.

These include previews of new projects, including M Vertica in Cheras, M Centura in Sentul, M Vista in Penang and Fern in Meridin East, Johor, as well as existing projects such as D’sara Sentral’s final tower OLO Residence in Sungai Buloh, Residensi Seri Wahyu in Jalan Kuching, Southville City in KL South, Dandelion in Meridin East, Johor and Covil@Meridin Bayvue, Johor.

Mah Sing group managing director Tan Sri Leong Hoy Kum also said its target is to increase its land bank in the Klang Valley to 75% of its gross development value (GDV) in the next two years, from the current 66%.

However, Leong gave investors assurance that the group will be careful in its evaluation, as "we will not buy for the sake of buying".

"There must be a compelling reason to buy each piece of land. We are looking at land banks with good location that fit into our business strategy,” he added.

Currently, the group has an approximate of 2,131 acres of remaining undeveloped land, with an approximate remaining GDV and unbilled sales of RM28.3 billion, which can support the group’s revenue and earnings growth for the next eight years.

Mah Sing shares closed one sen or 0.65% lower at RM1.52 today, bringing it to a market capitalisation of RM3.71 billion.