Despite Q1 2016 being a short working quarter following the Christmas and New Year festivities, Mah Sing Group posted property sales of RM407.9 million, while the figure for the first four months of the year reached RM536 million.
However, revenue fell from RM784.14 million in Q1 2015 to RM709.17 million, whereas net profit slid from RM98.89 million to RM95.03 million. As a result, earnings per share declined to 3.18 sen versus 4.64 sen a year ago.
Nevertheless, the company’s balance sheet remains healthy. In fact, it has a cash pile of RM1.1 billion, while net gearing is only 0.09 times, enabling it to invest or buy land when an opportunity arises.
In addition, it has unbilled sales of RM4.53 billion, representing 1.61 times the revenue from property sales in 2015, and this is expected to provide enough cash over the next 12 months.
“As at 31 March 2016, a total of approximately RM32.26 billion comprising unbilled sales of approximately RM4.53 billion combined with remaining gross development value (GDV) of approximately RM27.73 billion is expected to support eight to nine years of revenue growth,” it said.
Moving forward, Mah Sing Group intends to roll out RM1.8 billion worth of properties in 2H 2016.
Image: Sourced from Enterpriseasia.org
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.my
