KUALA LUMPUR: Mah Sing Group Bhd (Mah Sing) achieved its target sales of RM1.5bil for the financial year ended 2019, driven by strong take-up of its affordable homes.

Mah Sing recorded cash and bank balance of approximately RM1bil for the year ended 2019, and the group is in a position to continue its pursuit for more land banking activities while exploring joint venture prospects.

The group recorded a profit before tax of approximately RM270mil and revenue of approximately RM1.8bil in 2019. The group recorded a profit before tax of approximately RM58mil and revenue of approximately RM443mil for the fourth quarter of 2019.

On the property development front, revenue was approximately RM1.4bil, while operating profit was approximately RM254.6mil for  2019. This is mainly attributed to a higher proportion of new sales secured from new projects where the contribution to revenue is expected to increase upon completion of the initial stages of construction.

The plastics segment continued to contribute positively to the group’s performance. Revenue grew by 7.6% to approximately RM327mil, and operating profit was approximately RM20mil for 2019.

Mah Sing group managing director Tan Sri Leong Hoy Kum, said, “Majority of the total residential sales achieved for 2019 were from products priced below RM700,000, which serves as an impetus for us to continue to tap into this segment.

“Our quality product offerings are also seeing rising interest from overseas buyers in view of Malaysia’s attractive unique value proposition as a destination for retirement and education purposes as well as real estate investments business.”

The group currently has a remaining landbank of 2,049 acres with remaining gross development value and unbilled sales totalling approximately RM25bil, providing earnings visibility for at least eight years.

Mah Sing is proposing a final dividend of 3.35sen per ordinary share for the financial year ended 2019, subject to shareholders’ approval in the upcoming annual general meeting.

Mah Sing has been consistent in paying dividend rates of at least 40% of net profit over the last 14 years, upholding its commitment to reward shareholders while maintaining a prudent and disciplined approach for long-term sustainable growth.

For 2020, the group set a slightly higher sales target of RM1.6bil with 84% of target sales from residential properties below RM700,000.