Mah Sing Q4 earnings up 27.6% to RM70.7mil

KUALA LUMPUR: Mah Sing Group Bhd’s earnings in the fourth quarter ended Dec 31, 2013, rose 27.6% year-on-year to RM70.7mil from RM55.4mil, matching the 29.2% improvement in revenue.

The quarter’s revenue hit RM570.2mil from RM441.4mil in the corresponding quarter a year earlier.

Profit before tax for the property developer and plastic manufacturer was 26% higher at RM91.1mil, from RM72.3mil previously, and earnings per share inched up to 5.09 sen from 4.98 sen.

The Board of Directors proposed a first and final single-tier dividend of 8 sen per ordinary share of RM0.50 each – subject to approval at the forthcoming AGM.

Earnings for the full year came to RM280.6mil – up 21.7% from RM230.6mil in the previous financial year, as revenue went up 13% to RM2.005bil from RM1.775bil.

Profit before tax improved 17.7% to RM371.5mil from RM315.5mil, and earnings per share for the year came to 21.52 sen from 20.82 sen.

Revenue in 2013 from property development was RM1.7bil against RM1.6bil a year earlier. Operating profit margin was 20.1% compared to 19.4%. The increase in revenue was attributable to the increasing contribution from mixed developments.

According to Mah Sing, sales closed at a high of RM3bil as of Dec 31, 2013, meeting the group’s target, thanks to the increasing number of projects targeting the mid market.

Meanwhile, the plastics segment saw revenue grow by 12.7% to RM235.4 million (2012: RM208.8 million) as a result of higher pallet sales.

On its prospects for 2014, Mah Sing said with its unbilled sales at RM4.4bil, representing 2.6 times of 2013 full year property revenue, it is assured of near-term revenue visibility and steady streams of cash flow and liquidity.

“The fundamentals of property market remain sound underpinned by the young demographics, population growth, stable employment conditions and urbanisation. Overall, the group expects a positive growth prospect for 2014,” it said.

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