First of all, I have to declare that I still have 1,300 units of Mah Sing shares. I think its latest dividend declared is enough for me to treat my wife and two kids to a Sakae Sushi dinner. Haha. I think its latest results are pretty good especially with the extremely volatile 2015. Ringgit and GST was said to have affected the market so badly we are about to go into a crisis? 🙂 Read here: Malaysia in a recession? Not in 2015 Mah Sing announced that for FY15, its net profit rose to RM386.68 million from RM356.5 million a year earlier. Revenue climbed to RM3.11 billion from RM2.9 billion in FY14. Net margin is slightly above 12 percent. To be honest, on the lower end compared to some listed developers but is definitely still healthy.
Mah Sing has a net cash of RM1.4bil and net gearing of 0.04 times as at end of 2015. This is a very healthy set of numbers when compared to many other listed developers. Some of the better known names are much higher geared than Mah Sing. Of course, this may also meant others are much more aggressive too or perhaps it’s time that Mah Sing becomes more aggressive in buying lands and launching new projects. Mah Sing has declared a 6.50 sen per share. Based on its latest share price of RM1.30 this translates into a yield of 5 percent which is considered very good. Actually, when times are bad, the yield percentage may be even higher when share prices are battered.
Mah Sing hit RM2.3 billion sales in 2015 and will be aiming the same number for 2016. One major reason it has hit the target is because it’s pricing its products below RM1 mil and building homes mainly in the Klang Valley. Mah Sing said that for 2016, it will refocusing on end-user demand for BEGINNER homes. With this as their main focus, it would put Mah Sing as one of the top 3 leading listed developers for local property sales. As of Dec 31, 2015, Mah Sing had total unbilled sales of RM4.75bil and gross development value (GDV) of RM28.12bil. Unfilled sales is still close to 1.7 times the revenue recognised from the property division in 2015. This means continuous liquidity and steady stream of cash flow. Hopefully, I can get more than one dinner for its FY16 performance. Mah Sing said that within 2016, there’s an expected final stage billings on delivery of vacant possession of properties amounting to RM651 million.
I do not own any Mah Sing homes currently. Somehow, either the price or the size does not match what I have in mind. It’s okay. If there are any developer with potential, I do not mind holding a tiny little bit of their shares instead. In terms of Mah Sing target prices, take a look at some targets from the research houses. Happy buying, whether property or stock.
written on 28 Feb 2016
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