Mah Sing optimistic about hitting FY15 sales target

KUALA LUMPUR (April 24): Mah Sing Group is optimistic in achieving its sales target of RM3.43 billion for the financial year ending December (FY15), underpinned by its products which it believes are attractively priced, in the right segments and right locations.

However, Mah Sing had only achieved RM761 million in sales as at April 22 due to a shorter working first quarter  because of the festive season, founder and managing director Tan Sri Leong Hoy Kum (pictured) said in The Edge Financial Daily today.

“Our projects will continue to focus mainly on the Klang Valley as the population in the area is supposed to increase to RM10 million people by 2020,” he said.

The group expects to derive 67% of its sales this year from Greater Kuala Lumpur.

Meanwhile, Johor, Penang and Sabah are expected to contribute 20%, 11% and 2%, respectively.

As at Dec 31, 2014, the group had unbilled sales of RM 5.3billion, with a remaining gross development value of RM43.7 billion.

According to executive director (group corporate and investment) Datuk Steven Ng Poh Seng, the group has three project launches in the pipeline in Puchong, Seremban, Meridin East, Johor, this year.

“84% of the group’s launches this year will be priced below RM1 million, with 71% priced below RM700,000 and 44% priced below RM500,000,” said Ng.

He also noted despite cooling measures introduced by Bank Negara Malaysia, there remains a healthy demand for property.

“We have a very young population. Some 70% of our population is under the age of 39, as we have a very healthy employment market with less than 3% unemployment rate and decent gross domestic product growth of 4.5% to 5.5%, as well as a conducive interest rate environment,” he stressed.

In terms of landbank acquisition, Ng declined to provide details, only stating that there is no target and that the group is selective in future locations to be considered.