KUALA LUMPUR: Mah Sing is optimistic about having better performance this year and achieving its 2024 minimum sales target of RM2.5 billion.
For 2023, the developer reported a 24 per cent increase in pre-tax profit to RM327.4 million compared to RM264.1 million in the fiscal year 2022.
Founder and group managing director, Tan Sri Leong Hoy Kum, said that 2023 has been a remarkable and successful year for the company and that 2024 has already started off great.
For the first quarter ended March 31, 2024, the company reported an 8.4 per cent growth in pre-tax profit to RM82.1 million.
Mah Sing maintains a healthy balance sheet with a low net gearing of 0.06x and holds RM966 million in cash and bank balances as at March 31, 2024.
According to Leong, the 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.
Leong said that this proactive land acquisition strategy is integral to the company's growth, ensuring a continuous pipeline of high-value projects that meet market demands.
"We are happy and energised by our accomplishments so far. This year, we acquired two new lands (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 at Southville City, and were included in both the MSCI Malaysia Small Cap Index and Fortune Southeast Asia 500," he said.
Mah Sing's venture into the data centre sector with the launch of Mah Sing DC Hub at 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 company's extensive landbank to maximize long-term earnings potential and optimise the value and returns on assets.
Moving forward, Mah Sing will continue to focus on its M Series developments, supported by a robust pipeline of new product launches.
The company 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 to launch in the second half of the year. It will feature industrial lots and factories, starting at RM2.5 million.