KUALA LUMPUR (Nov 29): Mah Sing Group Bhd’s (KL:MAHSING) net profit for the third quarter jumped 20%, as lower costs more than offset declining revenue.

Net profit for the three months ended Sept 30, 2024 (3QFY2024) climbed to RM60.05 million from RM50.01 million a year earlier, driven by finalisation of construction costs for certain construction contracts that are close to completion.

This led to higher earnings per share of 2.35 sen for 3QFY2024, compared with 2.06 sen for 3QFY2023, said Mah Sing in its bourse filing on Friday.

Quarterly revenue, however, fell 0.8% year-on-year (y-o-y) to RM639.3 million from RM644.3 million, mainly due to a higher proportion of new sales secured from new projects, where contribution to revenue is expected to pick up when construction progresses past the initial stages of construction.

The group did not declare any dividend for the quarter under review.

For the nine-month period ended Sept 30, 2024 (9MFY2024), Mah Sing’s net profit rose 19.8% to RM180.3 million from RM150.5 million a year earlier, while revenue fell 8.1% to RM1.78 billion from RM1.93 billion in 9MFY2023.

The group said that property sales was at RM1.85 billion in the first nine months of the year, and that it is on track to meet its RM2.5 billion sales target for the year.

In a separate statement, Mah Sing said its healthy net gearing of 0.22 times supports its 2024 expansion, marked by four key land acquisitions, totalling RM5.12 billion in potential gross development value (GDV). 

Notable projects include M Aurora on Old Klang Road (RM660 million GDV) and MSS Business Park in Sepang, as the group aligns with its growth focus in Klang Valley, Johor Bahru, and Penang.

“The success is largely attributed to the group’s strategic focus on affordable properties targeting first-home buyers, complemented by strong branding and appealing product offerings that resonate with discerning buyers,” it said.

Backed by a strong balance sheet and strong demand for its M-Series developments, the group is focused on further expanding its landbanks in Klang Valley, Johor Bahru, and Penang.

“One good example is M Aspira, where we achieved an impressive quick turnaround by officially opening the sales gallery in Taman Desa, just four months after acquiring the land in July 2024,” said Mah Sing’s founder and group managing director Tan Sri Leong Hoy Kum.

“Mah Sing is proposing to improve the accessibility by building a new ingress from the Kuala Lumpur-Seremban Highway to Jalan Desa, and an egress from Jalan Desa to the East-West Link towards Petaling Jaya,” he added.

Coupled with the above, the group has also partnered with Bridge data centres for a second joint development at Mah Sing DC Hub @ Southville City, securing 300 megawatts (MW) of power, with an additional 200MW available for future collaborations. 

In Johor Bahru’s Meridin East, 42 acres offer a 300MW potential, creating strong sales prospects.

At time of writing on Friday, Mah Sing’s share price was down three sen or 1.75% at RM1.68, giving the group a market capitalisation of RM4.29 billion. Year-to-date, the stock has risen over 103%.