Mah Sing earnings up on mixed developments

Published: Saturday March 1, 2014 MYT 12:00:00 AM 

Updated: Saturday March 1, 2014 MYT 12:07:36 PM

Mah Sing says its revenue in FY13 from property development
was RM1.7bil against RM1.6bil a year earlier.

PETALING JAYA: Mah Sing Group Bhd’s earnings in the fourth quarter ended Dec 31, 2013, rose 27.6% year-on-year to RM70.7mil from RM55.4mil, matching the 29.2% improvement in its revenue.

The quarter’s revenue grew to RM570.2mil from RM441.4mil in the corresponding quarter a year earlier.

For the financial year ended Dec 31 (FY13), net profit grew to RM280.6mil from RM230.6mil in FY12 while revenue improved to RM2bil from RM1.8bil previously.

Mah Sing told Bursa Malaysia that revenue in FY13 from property development was RM1.7bil against RM1.6bil a year earlier.

“Operating profit margin was 20.1% compared with 19.4%. The increase in revenue was attributable to the increasing contribution from mixed developments,” it said.

According to Mah Sing, sales closed at a high of RM3bil as of Dec 31, 2013, meeting the group’s target, thanks to the increasing number of projects targeting the mid-market.

Meanwhile, the plastics segment saw revenue growth of 12.7% to RM235.4mil (FY12: RM208.8mil) as a result of higher pallet sales.

On its prospects for FY14, Mah Sing said with its unbilled sales at RM4.4bil, representing 2.6 times of FY13 full-year property revenue, it was assured of near-term revenue visibility and steady streams of cash flow and liquidity.

“The fundamentals of the property market remain sound underpinned by the young demographics, population growth, stable employment conditions and urbanisation. Overall, the group expects a positive growth prospect for 2014,” it said.

In a separate statement, Mah Sing said it expected property buying interests to be especially strong in the second half of the year, ahead of the goods and services tax (GST) implementation next year.

“Buyers are expected to take advantage of the current accommodative interest rate regime. The solid foundation built over the years ensured that the group remains flexible and responsive to market development and policies,” it said.

Mah Sing also said its board of directors had proposed a first and final single-tier dividend of 8 sen per ordinary share of 50 sen each, subject to approval at a forthcoming AGM.