KUALA LUMPUR: Mah Sing Group Bhd saw a 19.6 per cent increase in net profit for the year ended Dec 31, 2023, rising from RM180.1 million to RM215.3 million.
The company's revenue grew 12.3 per cent to RM2.6 billion from RM2.3 billion in the previous fiscal year.
In its quarterly report, Mah Sing attributed the increased revenue and profit primarily to higher property sales and ongoing construction progress leading to progressive revenue recognition.
"The development projects that were the key earnings contributors include M Vertica in Cheras, M Arisa in Sentul, M Luna in Kepong, Meridin East in Johor Bahru, M Oscar in Sri Petaling, M Adora in Wangsa Melawati, M Senyum in Salak Tinggi, M Panora in Rawang and Southville City in Bangi.
"Other projects which also contributed include M Astra in Setapak, M Nova in Kepong, M Aruna in Rawang, Southbay City and Ferringhi Residence in Penang, M Minori, Sierra Perdana , Meridin @ Medini and Mah Sing i-Parc in Johor," it said.
On the other hand, revenue from its manufacturing segment experienced a slight drop of1.4 per cent to RM435.2 million, down from RM441.3 million in the previous year.
"Operating loss narrowed significantly by 78.1 per cent to RM5 million compared with RM23.1 million in the preceding year's corresponding period due to the group's ongoing effort on cost management and cost optimisation measures to improve productivity and efficiency of its gloves operation," it added.
Mah Sing said revenue from the investment holding and other segments primarily included interest income from fund deposits, revenue generated from the trading of building materials and income from hotel operations.
Considering the strong property sales in FY23, Mah Sing set a higher sales target of at least RM2.5 billion for 2024.
"This optimistic forecast is underpinned by a compelling pipeline of projects strategically positioned in the affordably priced housing segment which aligns seamlessly with the current market demand, particularly from the rapidly growing first-home market," it said.
In 2023, Mah Sing acquired five new residential lands with gross development value (GDV) potential of over RM5.5 billion.
The acquisitions expanded the company's M-Series development portfolio, including projects such as M Terra and M Hana in Puchong, M Tiara in Johor, M Legasi in Semenyih, M Zenya in Kepong and M Azura in Setapak.
Additionally, Mah Sing secured land in Sepang in January 2024 for the development of Mah Sing Business Park, with a potential GDV of up to RM2 billion for the expansive 561.65 acres (RM728 million for the initial 185 acres).
Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said the flagship M series residential projects have strengthened the company's position in the local residential market.
"Mah Sing has a good track record with industrial projects and we have the right partners, network and design know-how.
"We anticipate a heightened contribution from the industrial developments going forward, complementing our focus on residential developments," he added.
Mah Sing announced a first and final dividend of 4.0 sen per share, indicating a payout ratio of 45 per cent, payable in May.