Mah Sing's Q1 profit drops 4.9% on higher expenses

PETALING JAYA: Mah Sing Group Bhd’s net profit decreased 4.9% to RM90.42 million in the first quarter (Q1) ended March 31, 2017, from RM95 million in the previous corresponding quarter, mainly due to higher expenses.
Revenue was slightly up by 2.03% to RM723.54 million, from RM709.17 million in the same period last year.
In a statement yesterday, the group said it achieved property sales of RM410.3 million for the first three months, by offering products in line with market demand, namely beginner homes for the mass market and upgrader homes in selected locations.
Approximately 70% of the sales achieved were from projects in Greater KL, it noted.
“With our two recent land acquisitions in the Klang Valley, coupled with our existing landbanks, we are in a better position to meet the market’s demand for affordably priced homes in strategic locations,” its group managing director Tan Sri Leong Hoy Kum said.
“We are also looking out for more landbanks. Of course any new land acquisitions will need to be strategic and we will adhere to our prudent financial policy of maintaining a healthy net gearing ratio,” Leong added.
As at March 31, 2017, the group’s cash and bank balances stood at RM837.6 million, with a net gearing of 0.02 times.
The group said it believes that the property market is currently undergoing consolidation, with healthy mid to long-term prospects due to strong fundamentals such as young population, stable employment and the continued development of public transport infrastructure.