Q&A session: Leong (centre) with executive director of corporate and investment Datuk Steven Ng Poh Seng (left) and CEO & executive director Ng Chai Yong briefing reporters after the company’s AGM.
KUALA LUMPUR: Mah Sing Group is currently in talks with the Government with the view of having a tie-up as it looks to further expand its affordable homes portfolio.
Managing director Tan Sri Leong Hoy Kum said the group is looking for more land acquisition and joint venture deals as the property developer was currently sitting on a RM1.1bil cash pile and net gearing of 0.09 times.
He said that the group is currently in discussions to work together with the Government but nothing has been confirmed at the moment.
He added that Mah Sing’s key focus is on affordable housing, and is planning for more products that would suit the mass market.
“The Government has a lot of land so basically it is ideal at this current point as it will benefit both parties,” he said in a media briefing after the group’s annual general meeting yesterday.
Mah Sing is currently looking for land in Greater KL, Klang Valley, Iskandar Malaysia and Seberang Prai and is not looking to venture outside of Malaysia.
“Malaysia will still be the best place for us,” Leong said.
Mah Sing currently has 46 development projects under its belt with 35 already in various stages of development.
“We currently have 2,522ha of existing land bank, which will keep us busy for the next eight years,” Leong added.
The group is intensifying efforts to reach its sales target of RM2.3bil with more upcoming launches in the second half of the year.
“We expect our upcoming launches this year to further add to our sales target. The second half of the year will be an important period and we are up for the challenge,” he said.
He said that Mah Sing’s upcoming launches are receiving good responses from the public and has recorded 4.5 times oversubscription for Cerrado in Bangi as well as Feringghi Residence 2 in Penang.
Commenting on the performance of the group in the first quarter, Leong said that despite a shorter working quarter due to the long festive season, the group has achieved property sales of RM536mil up to Apr 30, 2016.
The group also paid a minimum 40% of net profit as dividend for the 10th consecutive year.
Shareholders also approved a number of resolutions, among them the first and final single-tier dividend of 6.5 sen per ordinary share of 50 sen each in respect of the financial year ended Dec 31, 2015 which translates to an attractive dividend yield of about 4.5%.
As at March 31, 2016, the group’s remaining gross development value and unbilled sales stands at about RM32.26bil.
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