KUALA LUMPUR (Feb 28): Mah Sing Group Bhd’s net profit for the fourth quarter ended Dec 31, 2016 (4QFY2016) dropped 24% to RM85.61 million, from RM112.89 million a year ago, mainly due to lower contribution from its M City development in Jalan Ampang and Icon City in Petaling Jaya that were at the tail end of development in 2016.
Revenue had also dropped 4% to RM742.18 million in 4QFY2016, from RM773.14 million a year ago.
For its full year (FY2016), Mah Sing made a net profit of RM361.36 million, which is 6.5% lower from RM386.68 million a year ago. Revenue came in 4.9% lower at RM 2.96 billion, versus RM3.11 billion a year ago (FY2015).
It proposed a final dividend of 6.5 sen per share.
In a statement, Mah Sing’s group managing director Tan Sri Leong Hoy Kum said the company intends to leverage on its healthy balance sheet to pursue new, strategically-located landbanks.
“Our cash pile and low net gearing allows us to look out for potential land acquisitions, joint ventures and investment. Our focus is mainly in Greater Kuala Lumpur, but we are also open to other high growth locations in Malaysia,” he said.
The group currently has a cash pile of RM923.8 million with a low net gearing ratio of 0.02 times.
On its prospects, Mah Sing said it achieved approximately RM1.78 billion sales in FY2016 by offering products in line with market demand, namely beginner homes for the mass market and also upgrader homes in selected locations.
It said moving forward, it plans to focus on building more accessible homes.
“As we enter into the new financial year, we will continue to adopt a strategic approach and phase out our launches. The focus will be on accessible homes, with 73% of our residential sales target price point at RM700,000 and below,” said Leong
Currently in the pipeline for the group are a new township in Rawang, final tower of D’sara Central, Residensi Seri Wahyu in Lakeville Residence, Cerrado Block C and D in Southville City@KL South, landed link homes in Meridin East, Johor; and serviced apartments in Southbay City, Penang.
At the close of the morning session today, Mah Sings shares closed up one sen or 0.69% higher at RM1.46, with a market capitalisation of RM3.52 billion. — theedgemarkets.com