Mah Sing's Robust Performance On Track To Meet Target With Strategic Expansion In Data Centers, Landbanking And Project Launches

PropertyGuru
·5-min read
Mah Sing's Robust Performance On Track To Meet Target With Strategic Expansion In Data Centers, Landbanking And Project Launches
Mah Sing's Robust Performance On Track To Meet Target With Strategic Expansion In Data Centers, Landbanking And Project Launches

KUALA LUMPUR – Mah Sing Group Berhad (Mah Sing) continues to demonstrate strong growth and strategic expansion in 2024. At the Group’s 32nd Annual General Meeting (AGM), management highlighted key updates on their strategic initiatives, market outlook, operational performance, and future direction. Mah Sing is optimistic about achieving its 2024 minimum sales target of RM2.5 billion.

Strong Financial Performance, continuous strategic landbanking

For 2023, the Group reported a 24% increase in profit before tax (PBT) to RM327.4 million compared to RM264.1 million in the financial year 2022. Starting from a strong base, the Group reported an 8.4% increase in PBT to RM82.1 million for the first quarter ended 31 March 2024. Mah Sing maintains a healthy balance sheet with low net gearing of 0.06x and holds RM966 million in cash and bank balances as at 31 March 2024. Anticipated incoming Vacant Possession (VP) funds exceeding RM500 million this year are expected to generate significant free cash flow, further enhancing financial stability and supporting continuous growth and shareholder rewards.

Building on this momentum, Mah Sing has secured seven parcels of land since 2023, adding nearly RM9 billion in new Gross Development Value (GDV) to its portfolio. This proactive land acquisition strategy is integral to the Group’s growth, ensuring a continuous pipeline of high-value projects that meet market demands.

2024 set to be an exciting year

Mah Sing’s Founder and Group Managing Director, Tan Sri Dato’ Sri Leong Hoy Kum said, “In May, we paid a 4 sen dividend representing approximately a 48% payout, well above the minimum 40% payout policy for the last 18 years. Earnings per share increased by 36% from 6.50cent in 2022 to 8.87cent in 2023. This achievement underscores the Group’s commitment to delivering value to our shareholders. 2023 has been a remarkable and successful year for the Group and 2024 has already started off great. We are happy and energised by our accomplishments so far. This year, we acquired 2 new lands ie MSS Business Park in Sepang and M Tiara 2 in Johor Bahru, ventured into the data centre sector with the launch of Mah Sing DC Hub@Southville City, and was included in the both the MSCI Malaysia Small Cap Index and Fortune Southeast Asia 500.”

Expansion into the Data Centre Sector

Mah Sing’s venture into the data centre sector with the launch of Mah Sing DC Hub@Southville City marks a significant shift towards generating recurring income. Its collaborations with Bridge Data Centres and other potential data centre operators in Southville City, the upcoming MSS Business Park in Sepang, and their existing largest township, Meridin East in Pasir Gudang, Johor Bahru represent strategic moves that complement the current develop-and-sell business model. These partnerships aim to leverage the Group’s extensive landbank to maximise long-term earnings potential and optimise the value and returns on assets.

‘King of Urban Residential Projects’ to launch more projects in 2H2024

Hailed as the ‘King of Urban Residential Projects’ by one of the industry analysts, Mah Sing will continue to focus on its M Series developments supported by a robust pipeline of new product launches.

The Group anticipates stronger sales in the second half of 2024, driven by several planned launches, including M Azura in Setapak (indicative pricing from RM396,800); M Tiara landed link-homes in Johor Bahru (indicative pricing from RM624,800); M Sinar in Southville Bangi (indicative pricing from RM270,000); M Terra in Puchong (indicative pricing from RM250,000); and M Legasi landed link-homes in Semenyih, Selangor (indicative pricing from RM446,800).

Additionally, the new industrial development, MSS Business Park in Sepang, is scheduled for launch in the second half of the year.  It will feature industrial lots and factories, starting at RM2.5 million, reinforcing Mah Sing’s vision for a sustainable industrial ecosystem. It aims to attract local and foreign companies from the high-tech manufacturing and value-creation manufacturing sectors to establish their facilities in Sepang.

Operational Efficiency and Digitalization

Operational excellence continues to be a cornerstone of Mah Sing’s strategy, with a focus on practical design, efficiency, quality, cost-effectiveness, and timely execution. The MyMahSing App enhances the customer experience by providing features such as construction updates, account management, and payment facilities. Furthermore, the Digital Vacant Possession function and automated site supervision boost operational efficiency.

ESG recognition and inclusion in MSCI Malaysia Small Cap Index, Fortune Southeast Asia 500

Mah Sing was recently included in the MSCI Malaysia Small Cap Index and the inaugural list of Fortune Southeast Asia 500 which identifies the largest companies by revenue in the fast-growing region of Southeast Asia.  Mah Sing is a constituent of the FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Malaysia Shariah Index and ranks in the top 25% among Malaysia’s public listed companies evaluated by the index as at December 2023.

Mah Sing’s 30th Anniversary Campaign

To celebrate Mah Sing’s 30th anniversary this year, the Group launched a mega campaign offering 3 electric vehicles, including a Tesla Model 3 as one of the top prizes, along with cash prizes of up to RM10,000. The campaign will run until 31 March 2025. Homebuyers who have purchased and finalised the Sales and Purchase Agreement will be eligible to participate.

Unlocking the Value of Manufacturing Division

The Group’s plastic pallet manufacturing operations recently announced an expansion through a joint venture with a long-time partner PT.Gaya in Indonesia. This expansion is timely, aligning with the rising demand in Indonesia and addressing the capacity constraints in the Malaysian facilities to meet rising global demand. The Group also plans to explore expansion into other regions and aims to list the manufacturing business within three years to unlock its value.

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