On a quarterly basis, the group posted a lower net profit of RM44.98 mil for the fourth quarter ended Dec 31, 2019 compared with RM66.01 mil in the previous corresponding quarter.
Revenue for FY19 decreased to RM1.78 bil from RM2.19 bil previously. On a quarterly basis, revenue declined to RM442.64 mil for 4Q from RM514.64 mil previously.
Mah Sing recorded revenue from property development of RM1.4 bil for FY19 compared to RM1.8 bil in the previous year, while operating profit was RM254.6 mil against RM327.7 mil previously.
This is mainly attributable to a higher proportion of new sales secured from new projects, whose contribution to revenue is expected to progressively increase upon completion of the initial stages of construction.
“Higher revenue and profit contribution are expected from these projects when construction momentum starts to increase,” the company said in a filing with Bursa Malaysia today.
The group’s planned new launches for 2020 include M Arisa in Sentul (Phase 2), M Luna at Kepong Metropolitan Park, M Adora at Taman Melawati, M Vertica, Cheras Tower D, Cerrado Suites Phase 2 and Sensory Residences Tower B at Southville City @ KL South, as well as Carya and Phase 3 of M Aruna, Rawang.
In the statement, Mah Sing also said it has set a minimum sales target of approximately RM1.6 bil for 2020, with 84% of target sales from residential properties below RM700,000.
“Concurrently, in line with the group’s tagline ‘Reinvent Spaces. Enhance Life’, Mah Sing recently launched its ‘Eazy to Own’ sales campaign, an initiative targeted at first-time home buyers that offers easy entry with low upfront costs and affordability and great incentives and savings for buyers,” the group said.
It said with a healthy balance sheet, Mah Sing is also in a good position to continue to pursue more landbanking activities should opportunities arise, whilst exploring joint venture prospects.
It said the group’s balance sheet remains healthy with cash and bank balances of some RM1 bil as at Dec 31, 2019. – Feb 28, 2020, Bernama
