Riding on the success of its affordable M Series and good market outlook for affordably priced properties, Mah Sing Group Berhad (Mah Sing) is confident of achieving its 2023 sales target of RM2.2 billion property sales, having locked in RM600.6 million sales in the first quarter of 2023.
During Mah Sing’s 31st Annual General Meeting (AGM) today (June 22), the management briefed shareholders on Mah Sing’s initiatives, market outlook, operational performance, and strategy – all conducted via live streaming.
Mah Sing continues to maintain strong liquidity and balance sheet position with low net gearing of 0.2x as at 31 March 2023. Total vacant possession (VP) funds from completion of properties for 2023 and 2024 amount to approximately RM500 million and RM440 million respectively, which should boost cash position of the Group. The latest cash and bank balances and investment short term funds were approximately RM900.6 million as at to-date.
The Group had a bumper acquisition spree of 3 new lands with combined estimated Gross Development Value (GDV) of approximately RM4.5 billion in the first half of 2023. With the new acquisitions, Mah Sing’s prime landbanks increased to 2,418 acres, with total remaining GDV and unbilled sales of RM26.86 billion, providing the Group with sustained earning visibility.
Supported by its strong balance sheet and with good market outlook for affordable range, the developer continues eyeing more good lands with priority given to lands suitable for affordable M Series landed and high rise residential, and industrial developments.
Strong property sales of RM600.6 million in 1Q2023, continues momentum
Mah Sing’s Founder and Group Managing Director, Tan Sri Dato’ Sri Leong Hoy Kum (pic) said, “Our RM600.6 million sales in the first quarter of 2023 is a remarkable 33.5% increase compared to Q1 2022. As we enter 2H2023, Mah Sing remains committed to its strategic focus on the M Series, and upcoming launches include M Nova in Kepong with an indicative starting price of RM318,000; M Minori in Taman Seri Austin in Johor Bahru with an indicative starting price of RM260,000; future phases of M Senyum in Salak Tinggi with a starting price of RM530,000; double storey link homes in Meridin East in Johor Bahru with a starting price from RM446,000; and M Panora in Rawang with a starting price from RM659,700 and M Sinar in Southville City, Bangi with an indicative starting price from RM270,000.
The M Series distinguished itself through its appealing pricing, practical designs, and strategic locations in well-established communities, providing convenient access to amenities and connectivity. This customer-centric approach has struck a chord with homebuyers and gives us confidence in achieving our RM2.2 billion sales target,” Tan Sri Dato’ Sri Leong added.
New lands to boost earnings growth
In 1H2023, the Group acquired 3 strategically located plots of lands in Puchong (8.2 acres), Johor (75.7 acres), and Semenyih (500 acres) with combined estimated GDV of approximately RM4.5 billion. All three projects are slated for affordable landed and high-rise homes.
In January 2023, the Group acquired an 8.2-acre land in Puchong, setting the stage for 2 exciting projects: M Terra, a transit environment district (TED) residential development and M Hana, a mixed use development.
Additionally, in June, Mah Sing acquired 75.7 acres in Mukim Pulai, Johor Bahru for M Tiara, a landed residential development with double-storey terrace and double-storey cluster homes. The anticipated built-up areas are expected to range from 20’/22’X70’ to 32’X70’/75’, with indicative starting price from RM624,800.
Its most recent 500-acre acquisition in Semenyih will be named Glengowrie Estate, an integrated township development comprising mainly double storey landed homes with indicative priced starting from RM446,800.
Rewarding shareholders for 17th consecutive year
Shareholders approved all the resolutions which include the first and final dividend of 3sen per ordinary share for the financial year 2022 (FY2022). Mah Sing has been consistently paying dividend rates for minimum 40% of net profit for the 17th consecutive year. The long dividend payout track record is further proof that Mah Sing is committed to staying consistent, resilient, and dependable in the long term.
“Mah Sing Secured” Campaign
Launched in 1H2023, the “Mah Sing Secured” Campaign offers homebuyers fixed interest rate, step-up payments scheme, attractive packages and incentives, additional rewards to kick start their homeownership journey. In 2023, Mah Sing offers 96% residential properties priced below RM700,000 and 65% residential properties priced below RM500,000 which are highly sought after in the current market.
Healthy balance sheet, strong vacant possession pipeline
Mah Sing continues to maintain a healthy balance sheet, driven by the Group’s focused and disciplined execution of projects and steady construction progress. To ensure future revenue visibility, Mah Sing’s unbilled sales stand at approximately RM2.26 billion as at 31 March 2023.
In April 2023, Mah Sing successfully completed and delivered Tower C, D, and E for M Vertica in Cheras ahead of schedule, showcasing its commitment to timely project completions. Other projects which are expected to be completed by the end of 2023 and 2024 are M Oscar in Sri Petaling, Erica link homes in Meridin East, Johor Bahru, Delphy link homes in M Aruna, Rawang, Tower B of Sensory Residence in Southville City, M Adora in Wangsa Melawati, M Arisa in Sentul and M Luna in Kepong.
Commitment to Sustainability
Mah Sing recently received the Malaysia Sustainability Excellence Award for the second consecutive year on 19 June 2023. Aligned with its sustainability efforts, Mah Sing has consistently taken proactive initiatives to enhance sustainable development across its business operations and strategies.
Within the Property Division, the Group has prioritized environmental goals by incorporating green building certification, accessibility for electric vehicles, energy-saving lighting, an automated waste collection system, and green provisions in design concepts and developments. Mah Sing received GreenRE certification for its M Astra, M Nova and M Panora projects.
Moving forward, Mah Sing is adopting Task Force on Climate-Related Financial Disclosures (TCFD) reporting framework to strengthen their process for evaluating, monitoring, and measuring material ESG-related issues and risks.
Mah Sing’s 31st AGM, held on 22 June 2023, was chaired and concluded by Tan Sri Dato’ Seri Siti Norma Binti Yaakob, the former Chairperson and Senior Independent Non-Executive Director of Mah Sing. During the AGM, all resolutions brought forth were voted on and approved by the shareholders. Following the conclusion of the AGM, Tan Sri Dato’ Seri Siti Norma did not offer herself for reelection and officially retired from her position. After the conclusion of the AGM, an announcement was made regarding the appointment of the new Chairperson, Admiral (R) Tan Sri Dato’ Seri Panglima Abu Bakar Bin Abdul Jamal, effective 1 August 2023.
