KUALA LUMPUR (Aug 30): Property developer Mah Sing Group Bhd (KL:MAHSING), which saw its second-quarter net profit rise 19.3% year-on-year (y-o-y), said it recorded RM1.66 billion in sales in the first eight months of 2024 — on track to meet the full-year sales target of at least RM2.5 billion.

Net profit for the three months ended June 30, 2024 (2QFY2024) climbed to RM60.2 million from RM50.5 million a year earlier, driven by higher margins and lower net finance costs.

This led to higher earnings per share of 2.37 sen for 2QFY2024 compared with 2.08 sen for 2QFY2023.

Quarterly revenue, however, fell 10.2% y-o-y to RM578.4 million from RM644.2 million, mainly due to a higher proportion of new sales from projects where significant revenue is expected once construction progresses beyond the initial stages.

No dividend was declared for the quarter under review.

For the six-month period ended June 30, 2024 (1HFY2024), Mah Sing's net profit rose 19.6% to RM120.3 million from RM100.5 million a year earlier, while revenue fell 11.7% to RM1.14 billion from RM1.29 billion in 1HFY2023.

The group is on track for a strong FY2024 performance, supported by RM2.43 billion in unbilled sales, said Mah Sing in a statement on Friday.

Gearing up with multiple new launches, it added that it is on track to meet its minimum sales target of RM2.5 billion for 2024 and anticipates stronger sales in the rest of the year. These include M Azura in Setapak, M Tiara landed link-homes in Johor Bahru, M Terra in Puchong, M Legasi landed link-homes in Semenyih, Selangor and M Aspira in Taman Desa here.

“With plans to further expand our M Series and introduce new offerings, we are well-positioned to continue our upward trajectory and achieve our 2024 objective,” said Mah Sing's founder and group managing director Tan Sri Leong Hoy Kum.

Mah Sing has a strong balance sheet with RM911.5 million in cash and bank balances and investment in short-term funds, with a net gearing of 0.1 times as of June 30, 2024.

"With three new land acquisitions this year, in addition to five in 2023, the group has secured close to RM10 billion in new gross development value, ensuring sustainable earnings visibility. Free cash flows of approximately RM500 million which is periodically generated from vacant possessions and property completions this year will further boost liquidity," said Mah Sing.

At the noon break on Friday, shares in Mah Sing were seven sen, or 4.52%, higher at RM1.62, valuing the group at RM4.15 billion. The counter has risen over 95% year-to-date.