• For 2024, the company said it is targeting sales of at least RM2.5 billion — having recorded RM2.26 billion in 2023 — underpinned by a pipeline of projects in the affordable housing segment.

KUALA LUMPUR (Feb 27): Property developer Mah Sing Group Bhd said on Tuesday its net profit climbed 38% in the fourth quarter of 2023 from a year earlier, thanks largely to higher margin and lower net finance costs.

Net profit for the three months ended Dec 31, 2023 was RM64.74 million compared to RM46.78 million over the same period last year, Mah Sing said in an exchange filing. Revenue for the quarter rose marginally year-on-year to RM671.28 million from RM670.87 million.

“We anticipate heightened contribution from the industrial developments going forward, complementing our focus on residential developments,” said managing director Tan Sri Leong Hoy Kum. Mah Sing anticipates “a stronger financial performance in 2024,” the company noted.

The company declared a first and final dividend of four sen per share for 2023, representing a 45% payout.

For 2024, the company said it is targeting sales of at least RM2.5 billion — having recorded RM2.26 billion in 2023 — underpinned by a pipeline of projects in the affordable housing segment.

For the full year of 2023, net profit rose nearly 20% to RM215.29 million versus RM180.05 million in 2022, thanks to higher property sales and progressive revenue recognition from ongoing construction progress. Unbilled sales totalled RM2.33 billion.

Mah Sing said it plans to launch all new developments by end-2024 and anticipates “early contributions” from its newly acquired industrial land.

In 2023, the company acquired six parcels of land with a substantial potential gross development value (GDV) of about RM6.23 billion, including a new piece of industrial land in Sepang that boasts a potential GDV of up to RM2 billion.

On its balance sheet, Mah Sing said it has incoming vacant possession funds of up to RM500 million this year, which would generate significant free cash flow. Year-end cash, bank balances and short-term investments totalled about RM981.3 million, along with a record-low net gearing ratio of 0.08x.

Shares of Mah Sing slipped 0.5% at midday trading break to RM0.91, valuing the company at RM2.21 billion.

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