Friday 29 Mar 2024
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KUALA LUMPUR (May 31): Mah Sing Group Bhd's net profit for the first quarter ended March 31, 2018 (Q1FY18) fell 29% to RM64.2 million compared with RM90.4 million a year ago, due partly to slower progress of work during the festive season coupled with more projects focusing on affordable products and at their initial stages of construction.

Earnings per share fell to 1.89 sen from 2.99 sen in 1QFY17. Quarterly revenue was at RM584.76 million versus RM723.54 million a year ago.

In a statement today, the property developer said it had secured new property sales of RM470 million for the quarter under review and is confident of exceeding its sales target of at least RM1.8 billion for the year.

Additional to these strong sales from new projects such as M Centura in Cheras and M Vertica in Sentul, the group recently launched its "Desire campaign" covering 19 projects with completed or soon-to-be-completed homes and commercial spaces nationwide.

Mah Sing's group managing director Tan Sri Leong Hoy Kum said the Desire campaign will help further boost the sales of the company.

"The target market for this campaign are mainly owner-occupiers and investors looking for ready-to-move-in homes as well as workspaces. There is a pent-up demand for completed homes and the Desire campaign provides easy ownership financing packages — flexible financing schemes with a low deposit, affordability — ability to adjust the payment of financial schemes to limit down payment, viewing the actual unit, complimentary renovation consultation, furnishing packages and moving-in services for selected projects," Leong said.

He said the group will continue to focus on building affordably priced homes below RM500,000.

"Our goal is to reinvent space, enhance life and ultimately enable everyone to own a home. Driven by our goal, we continue to focus on building affordably priced homes as this is what the market is currently looking for. In fact, a recent survey from the Lafarge-EdgeProp MYHOME campaign shows that 79% of Malaysians are looking for homes below RM600,000. This shows that our strategy is in the right direction as 74% of our sales target for 2018 is below RM500,000," said Leong.

Moving forward, the group will continue to look out for strategic land banks with favourable payment terms supported by a healthy balance sheet with net cash position.

"Mah Sing will focus on increasing its land bank in Klang Valley to 75% from the current 66% in the next 2 to 3 years," it said.

At Bursa Malaysia, Mah Sing shares closed up six sen or 5.77% to RM1.10, for a market capitalisation of RM2.57 billion.

 

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