Tuesday, November 20, 2012

Mah Sing bullish on RM3b sales

KUALA LUMPUR: Mah Sing Group Bhd is bullish on achieving sales of RM3 billion in fiscal 2013 and this time it will roll out more products targeting foreign purchasers.

The group plans to increase the base of its foreign purchasers from the current 5-6 per cent to 10-15 per cent, says group managing director cum group chief executive, Tan Sri Leong Hoy Kum.

Mah Sing has about 40 ongoing projects that have remaining gross development value (GDV) of over RM20 billion.

With a cash pile of RM545.3 million, it plans to roll out RM3.76 billion worth of new products next year from existing and new projects, Leong said in a statement yesterday on its third quarter results.

For the nine months ended September 30, 2012, Mah Sing's net profit rose 37 per cent to RM175.2 million from the corresponding period in the previous year, driven by changes in property mix.

Revenue was up 16 per cent to record RM1.3 billion, attributable to property development activities carried out in Kuala Lumpur, Klang Valley, Penang Island and Johor Baru.

Mah Sing's unbilled sales as at September 30 were around RM2.95 billion or 2.2 times the revenue recognised from the property division in 2011, giving the group significant earnings visibi-lity.

For fiscal 2013, Mah Sing is targeting to achieve 59 per cent sales from its projects in Greater Kuala Lumpur, 20 per cent from Johor, 14 per cent from Penang and six per cent from Sabah.

Leong said the star performers for 2013 will be Southville City in Bangi, M Residence 1 and 2 in Rawang, Kinrara Residence in Puchong and Garden Residence in Cyberjaya.

"We have consistently achieved more than RM2 billion sales since 2011, and our stable of 40 projects will enable us to continue sustaining our sales," he said. 

Mah Sing is on track to meet its 2012 sales target of RM2.5 billion, having achieved about 90 per cent or close to RM2.2 billion as at November 15.

Having recently concluded an enbloc sale, Mah Sing is upbeat there would be more deals ahead. Since 2007, Mah Sing has completed seven enbloc deals with institutional and private investors.


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