Mah Sing Group Berhad (Mah Sing) has achieved its sales target of RM1.1 billion for the financial year ended Dec 31, 2020, driven by its strategy in digital marketing and affordable properties offered at strategic location, namely in Klang Valley, Penang and Johor, notwithstanding the challenging market environment throughout most of the period following the impact of Covid-19 pandemic.
The property developer also saw strong uptake in sales figures at the start of 2021 where the Group achieved approximately RM250 million sales within the first two months.
With the achievement of RM1.35 billion sales in the past 14 months and in line with better property outlook this year, the Group is now setting a higher sales target of RM1.6 billion for the entire 2021, with 91 percent of products priced below RM700,000, and 51 percent below RM500,000.
For the cumulative 12-month period ended Dec 31, 2020, the Group posted profit before tax of RM153.7 million on the back of revenue of RM1.5 billion. Mah Sing’s Q42020 profit before tax of RM47.6 million was higher as compared to the immediate preceding quarter of RM40.5 million mainly due to increased contribution from on-going projects namely M Vertica and M Centura.
Revenue of RM472.8million for Q42020 was also higher as compared to the immediate preceding quarter of RM388.2million.
On the property development front, revenue was RM1.2 billion while operating profit was RM148.1 million for the 12-month period ended Dec 31, 2020.
The 12 months under review was affected mainly by the lingering impact of Movement Control Order (MCO) and Conditional MCO where level of activities on sites were generally lower. The strict lending environment also affected sales conversion which weighed on revenue recognition.
Mah Sing will focus on affordable landed homes in the outskirts/suburban areas and affordable high rises in the central business district areas as the Group believes this is where the demand remains resilient.
With its cash and bank balances of approximately RM1.16 billion as of 31 December 2020, the Group is looking to selectively scouting for strategic land bank for continuous growth.
Mah Sing has recently announced that the Group will be developing a new 100 acres land in Bandar Baru Salak Tinggi – M Senyum, which have an estimated gross development value (GDV) of approximately RM656 million.
Based on preliminary plans, the development is planned to be a landed residential project comprising mainly affordable double story terrace houses with indicative land size of 18’X65’ and 20’X70’.
The project is indicatively priced from RM399,000, with the registration of interest and launching targeted to be in the second half of 2021. This marks the first land deal of Mah Sing in 2021.
With the new land, the Group has remaining landbank of 2,076 acres with remaining gross development value and unbilled sales totalling of approximately RM24.64 billion which can provide earnings visibility for at least eight years.
Mah Sing will focus on affordable landed homes in the outskirts/suburban areas and affordable high rises in the central business district areas as the Group believes this is where the demand remains resilient.
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