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Wednesday, June 26, 2013

Mah Sing on track to achieve RM3bil sales target

Source: http://biz.thestar.com.my/news/story.asp?file=/2013/6/26/business/13287806&sec=business

KUALA LUMPUR: Property developer Mah Sing Group Bhd is poised to achieve its RM3bil sales target for 2013, having delivered about RM750mil in sales for the first quarter of this year.
Year-to-date, the company has acquired four parcels of land with a combined gross development value (GDV) of RM7.78bil.
The said parcels of land include integrated commercial centres like D'sara Sentral, Greater Kuala Lumpur; Lakeville Residence, Kepong; Meridin@Senibong, Iskandar Malaysia; and the Kota Kinabalu Convention Centre in Sabah.
Further acquisition of prime land is feasible based on the current low net gearing of 0.19 times and cashpile of some RM822mil as at March 31.
“We have the financial prowess to take on more land, be they fast turnaround niche projects or large townships. Yet we can comfortably maintain our growth with our existing land bank,” said group managing director and chief executive Tan Sri Leong Hoy Kum at the company's AGM.
The main focus of future acquisitions would be Greater Kuala Lumpur due to the healthy market and urbanisation, he added.
The total land acquired by Mah Sing in 2012 amounted to a GDV of RM7.38bil.
The company has progressively launched new and existing projects, including Icon City, Petaling Jaya; M Residence@Rawang; The Loft@Southbay City; The Meridin@Medini; and Sutera Avenue, Kota Kinabalu.
With regards to Bank Negara's potential curb on the developer interest-bearing scheme (DIBS), Leong said “there has been no announcement yet”.
He, however, “hoped that any implementation would take into proper consideration the industry's feedback and the current market condition”.
He also noted that “the lending environment was generally still conducive, financing liquidity was still attractive and interest rates were still low”.
According to CIMB Investment Bank Bhd head of research Terence Wong, Mah Sing should be less susceptible and would still manage to break new sales records. This is because it had limited the offering of DIBS to only a handful of projects since 2012.
“We remain overweight' on the property sector, with Mah Sing as our top pick and robust sales and earnings growth as sector catalysts. Any weakness in property stocks is an opportunity to accumulate,” he said in a report.
The brokerage remains selectively optimistic on certain segments of the property market, particularly for the medium to mid-high-end segments.
“We still see good demand for serviced residences from 500 sq ft in prime city or commercial locations, landed properties below RM1mil in good schemes with easy access and amenities, or mid-high to high-end residences in matured schemes.”
Among the resolutions approved during the AGM was the declaration of the first and final dividend of 7.6 sen per ordinary share.
The company recorded a 16% year-on-year increase in net profit to RM69.5mil for the first quarter of 2013.


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