Mah Sing On Track To Achieve Rm1.5 billion Sales Target In 2019; Records RM1.136 billion New Sales In 9M2019
~ M Oscar Saw Strong Take Up Since Initial Launch; M Arisa, M Luna And M Adora Are Anticipated To Receive Similar Promising Responses~
Kuala Lumpur, 2019 – Mah Sing Group Berhad (Mah Sing) registered RM1.136billion sales in the nine-month period ended 30 September 2019, sustaining its momentum to achieve the RM1.5billion sales target for 2019. Mah Sing’s balance sheet continues to remain healthy with cash and bank balances of approximately RM1billion. This will prepare the Group to continue replenishing its prime lands with key focus on affordable property projects especially in Klang Valley, and Johor as well as Penang should the opportunities arise, whilst exploring joint venture prospects.
In 2019, the Group has acquired three prime lands, with the second acquisition (M Luna, KL North) announced in July 2019 and third acquisition(M Adora, Wangsa Melawati) in August 2019. The first project from Mah Sing’s 2019 land acquisition trail, M Oscar (Off Kuchai Lama) was acquired in March 2019 and within 7 months, it was successfully launched in October 2019, with its first phase comprising 200 units recorded 100% take-up during its initial launch.
Mah Sing’s Founder and Group Managing Director, Tan Sri Dato’ Sri Leong Hoy Kum
All the new lands are equipped with approved development order, which allow the Group to leverage on its fast turnaround business model to launch the new projects swiftly. The registration of interest for M Luna and M Adorahas commenced concurrently as well and are expected to receive promising responses with the growing interest towards the projects after the land acquisition announcements. Both M Luna and M Adora are targeted to be launched in Q1 2020.
Apart from the new projects from this year’s land acquisitions, Mah Sing also recently launched M Arisa’s new sales gallery, featuring its second affordable residential development in Sentul. M Arisa’s sales gallery opening continues to expand Mah Sing’s footprint in Sentul, following its first successful project, M Centura, which garnered overwhelming response with over 90% take-up rate, within two years of its launch.
“As a market driven developer, we understand the market needs and is constantly adapting our strategies to suit the demand. We have always believed that properties in the affordable range and at good locations are still seeing good demand. The projects that we have recently launched or currently in the pipeline are all affordably priced with good accessibility and connectivity. This showcases our commitment in continuously providing quality affordable homes to the home owners as 81% of our full year target sales for 2019 is from residential properties below RM700,000. Supported by our strong track record of tailoring our products to fit the needs of the home buyers, we are positive that our projects will continue to gain positive responses.” said Mah Sing’s Founder and Group Managing Director Tan Sri Dato’ Sri Leong Hoy Kum.
Q3 2019 Results
Mah Sing registered a profit before tax of RM211.9 million on the back of revenue of RM1.3billion for the nine-month period ended 30 September 2019.
On a quarterly basis, the Group recorded profit before tax of RM69.9 million and revenue of RM415.5 million.
For the property development business, the revenue for nine-month period ended 30 September 2019 was RM1.1billion with an operating profit of RM189.3 million. The RM1.1billion revenue was mainly attributable to the new sales secured from new projects where contribution to revenue is expected to pick up once past the initial stages of construction. Revenue and profit contribution are expected to increase from these projects when construction momentum starts to pick up.
The development projects which contributed to the Group’s results include M Vertica in Cheras, M Centura in Sentul, M Aruna in Rawang, Southville City in KL South, Lakeville Residence in Jalan Kuching, D’sara Sentral in Sungai Buloh, M Residence and M Residence 2 in Rawang and M City in JalanAmpang in Greater KL and Klang Valley, Ferringhi Residence in Penang and The Meridin@Medini, Meridin East and Sierra Perdana in Johor.
The plastics segment continued to contribute positively to Group performance by recording a revenue growth of 10.2% to RM240.9 million inthe current period ended 30 September 2019.
Remaining Gross Development Value And Unbilled Sales Of ApproximatelyRM25.5Billion; Prudent Financial Management And Healthy Balance Sheet Fuels The Group To Continue Its Landbanking Exercise
As of 30 September 2019, the Group has remaining landbank of 2,064 acres,with remaining gross development value and unbilled sales of approximately RM25.5billion, providing steady earnings visibility for the Group, which can sustain its growth for next 8 to 9 years.
With the strong foundation of healthy balance sheet and disciplined financial management, Mah Sing is aiming to increase its land banks,especially in Klang Valley, focusing on the affordable segments where the demand staying resilient.
Tan Sri Dato’ Sri Leong Hoy Kum commented, “In line with our growth strategy, we are constantly on the lookout for more prime lands at strategic locations with attractive pricing points as it resonates with our aim to expand in areas with large population growths. Projects which are located within well-established surrounding neighbourhoods, equipped with ready amenities and easily accessible infrastructures, coupled with strategic access to highway connectivity will always be the driving factors for our products to be well received in the market amid the scarcity of prime lands in Klang Valley today.”
Extended Home Ownership Campaign 2019 Continues To Ease Home Ownership
The Group is seeing growing interest especially in the affordable segment, and this has returned buyers’ purchasing confidence, especially on the back of government’s proactive measures in introducing the Home Ownership Campaign (HOC) early this year. The extended HOC until 31 December 2019 which offers various incentives and stamp duty exemptions continues to be an impetuous to promote home ownership, encouraging more potential home buyers to secure their ideal home within the campaign period.
Participating projects for the Home Ownership Campaign 2019 in Central region include M Oscar located Off Kuchai Lama (high-rise residential), M Vertica in Cheras (high-rise residential), M Centura in Sentul (high-rise residential), M Aruna in Rawang (2-storey link homes), Sensory@SouthvilleCity (high-rise residential) and Cerrado@Southville City (high-rise residential) in KL South and Lakeville Residence in Jalan Kuching (residential suites).
In Penang, participating projects include M Vista in Southbay City (serviced apartment), The Loft in Southbay City (seaview residential suites), FerringhiResidence in Batu Ferringhi (condominiums), Ferringhi Residence 2 in BatuFerringhi (condominiums)
In Johor, participating projects include Meridin East in Pasir Gudang (landed residential), Meridin@Medini in Iskandar Puteri (mixed development) and Meridin Bayvue in Sierra Perdana (high-rise residential).
“Lock And Win” Campaign And “Refer N’Reward” Referral Campaign Running Concurrently With HOC
Leveraging on the HOC introduced by the government and in conjunction with its 25th anniversary in property development, Mah Sing has concurrently launched its sales campaign, “Lock and Win” in Q3 2019 to drive sales. The “Lock and Win” campaign is open to all Mah Sing purchasers who have successfully booked their respective properties within March 1 2019 to 31 December 2019. The campaign rewards buyers with up to RM2million worth of prizes when they purchase from a selection of the Group’s participatinghomes and commercial spaces nationwide.
Homebuyers who are eligible to participate in the campaign will be able to win a variety of prizes such as cash prizes and hotel vouchers. On top of that, eligible buyers who purchased properties from a few selected participating projects will also be eligible for an additional set of prizes from a range of sports utility vehicles on top of the cash prizes and hotel vouchers.
Meanwhile, the “Lock and Win” campaign is also running alongside with the “Refer N’Reward (RnR)” referral campaign, which began in 1 July 2019. The RnR campaign rewards eligible referees who introduced their family members and friends to purchase a Mah Sing property.
Mah Sing Expanded Its Innovative Initiatives To Educate Home Buyers On Home Loan Application
As part of Mah Sing’s continuous effort to be at the forefront of innovation, the Group also introduced ‘Madam Loan’, the first of its kind artificial-intelligence-enabled chatbot for a Malaysian property developer, in collaboration with RinggitPlus. Madam Loan is an educational platform which also facilitates home loan applications, in which potential home buyers can now get answers on home loan related questions and apply for their home loans via the platform.
The development of this technology product was inspired by the feedback received by Mah Sing from home seekers. Madam Loan emerged as a chatbot to help empower potential home buyers with basic financial knowledge required to own a property, and users can also use Madam Loan to submit home loan application straight to multiple banks. Madam Loan will also suggest a wide selection of Mah Sing’s properties that would suit one’s budget.
This is another initiative that the Group explored to complement the customers’ homeownership journey, echoing its strategy to keeping up with digital trends and digitalise all aspects of it business.
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