MAH SING IS EXPLORING LAND ACQUISTION AND JOINT VENTURE OPPORTUNITIES

KUALA LUMPUR – Mah Sing Group Berhad (Mah Sing) is exploring land acquisition and joint venture opportunities. The Group has approximately RM1.1billion in cash and bank balances as well as a net gearing of 0.09 times as at 31 March 2016. Further adding to the Group’s cash position is the final stage billings amounting to approximately RM474million for remaining properties completing this year. Mah Sing has a key focus in Greater KL and Klang Valley, as well as in Johor Bahru, Penang and states with strong economic prospects.

 

Mah Sing’s 24th Annual General Meeting (AGM) saw the Group continue its commitment to pay a minimum 40% of net profit as dividend for the 10th consecutive year. Shareholders also approved a number of resolutions, among them the first and final single-tier dividend of 6.5sen per ordinary share of RM0.50 each in respect of the financial year ended 31 December 2015, which translates to an attractive dividend yield of approximately 4.5%.

 

From an operational standpoint, the Group is intensifying efforts to reach its sales target of RM2.3billion with more upcoming launches in 2H2016. Despite a shorter working quarter due to the long festive reason, the Group has achieved property sales of RM536million up to 30 April 2016.

 

Interest in the Group’s properties is underpinned with the Group developing affordable homes, with a focus within the Klang Valley, as 89% of Mah Sing’s planned residential launches priced below RM1million, 68% priced below RM700,000 and 50% priced below RM500,000.

 

 

Tan Sri Dato’ Sri Leong Hoy Kum, Group Managing Director of Mah Sing, shared that “We look forward to the launches of Cerrado@Southville City, the final towers of Lakeville Residence and D’sara Sentral as well as M Residence 2 to contribute to our sales target. The Group is also looking forward to showcase Ferringhi Residence 2 in Penang Island as well as The Greenway@Meridin East in Iskandar Malaysia, Johor Bahru later this year. Meridin East is our largest township in Malaysia and we expect it to be another key performer for the Group, together with Southville City@KL South.”

 

“We are also keeping an eye on land banks in strategic locations with good accessibility which fit the Group’s business model. We are even going one step further by moulding value-enhancing initiatives which will further strengthen our position in the market. For example, only half of Southville City’s 428 acres of land will be developed, with the remaining land left in its natural green state to maintain the township’s green concept. There will also be eco features to encourage the community to adopt a healthy and active lifestyle. Land banks represent our raw materials and we always look at enhancing the value of the land” commented Tan Sri Dato’ Sri Leong.

 

HEALTHY REGISTERED INTEREST FOR UPCOMING LAUNCHES

Mah Sing’s planned residential launches in the second half of 2016, particularly Cerrado serviced apartments at Southville City@KL South will contribute to the Group’s sales target of RM2.3billion.

 

Mah Sing’s upcoming launches are receiving good responses from the public. The Group recorded approximately 4.5x oversubscription for Cerrado (7,000 registrants for 1,616 units) as well as Ferringhi Residence 2 in Penang Island (2,210 registrants for 478 units). The Group expects to see similar strong interest from its other planned residential launches in the second half of 2016, which include:

 

Greater KL and Klang Valley

 

• Cerrado service apartments in Southville City@KL South. Comprise of 2 phases with 1,616 units offering two types of layouts namely 2 and 3 bedrooms with built-ups from 565 square (sq) feet (ft) – 825 sq ft. Units are indicatively priced from RM388,000. (mentioned earlier)

 

 

 

• D’sara Sentral, Sungai Buloh – launch of final service apartment block. Total of 197 units with built-ups from 781 sq ft – 1,385 sq ft. Units are indicatively priced from RM580,000.

 

 

 

• Lakeville Residence, Taman Wahyu – launch of final tower of service apartment. Total of 327 units with built-ups from 977 sq ft 1,345 sq ft. Units are indicatively priced from RM595,000.

 

 

 

• M Residence 2 in Rawang – landed cluster homes (last phase of M Residence 2). Total of 120 units with built ups from 2,205 sq ft. Units are indicatively priced from RM660,000. 

 

Penang

 

• Ferringhi Residence 2 in Batu Ferringhi – resort condominiums. Total of 478 units with built-ups from 1,208 sq ft – 2,910 sq ft. Units are indicatively priced from RM775,000. (mentioned earlier)

 

 

Iskandar Malaysia, Johor Bahru

 

• The Greenway@Meridin East township in Pasir Gudang – 2 storey link homes. Total of 492 units with built-ups from 1,595 sq ft – 1,648 sq ft. Units are priced from RM356,000.

 

 

UNBILLED SALES AMOUNTING TO APPROXIMATELY RM4.53BILLION, 1.61 TIMES REVENUE RECOGNISED FOR THE PROPERTY DIVISION

Mah Sing’s unbilled sales of approximately RM4.53billion as at 31 March 2016 represents approximately 1.61 times revenue recognised from Mah Sing’s property division in 2015.

 

As at 31 March 2016, the Group’s remaining gross development value (GDV) and unbilled sales stands at approximately RM32.26billion. The Group’s combined remaining GDV and unbilled sales can potentially support the company’s revenue growth for 8 to 9 years.  

 

MAPPING OUT A STRATEGIC 2H2016 WITH STRONG FUNDAMENTALS

The second half of the year will see Mah Sing continue intensifying efforts to hit its sales target of RM2.3billion.  The Group will stay true to its strategy with prudent and discipline financial management, as well as focus on selective launches of the right products in the right locations.
Tan Sri Dato’ Sri Leong noted, “We have the right product mix that is catered to the current market’s needs. To date, we have had encouraging sales numbers from our various properties among them Southville City@KL South in Bangi, Lakeville Residence in Taman Wahyu, D’sara Sentral in Sungai Buloh, M Residence 2 in Rawang, and Ferringhi Residence in Batu Ferringhi, Penang. We expect our upcoming launches this year to further add to our sales target. The second half of 2016 will be an important period and we are up for the challenge.”