Property

KUALA LUMPUR: Mah Sing Group Bhd is riding high on savvy execution, a quick turnaround business model, and a strong focus on affordable properties at strategic locations with strong demand. AmInvestment Bank Bhd, in a report, expect an uptick in its FY24 net gearing ratio as a result of finalising payments for several land acquisitions. In the fourth quarter (Q4) FY23, Mah Sing’s net gearing ratio was low at 0.08x, down from 0.13x in the third quarter (Q3) FY23. The bank-backed research firm said Mah Sing is currently under negotiations with several parties for potential land acquisitions in Klang Valley, Penang and Johor for the development of residential and industrial properties. On earnings, AmInvestment Bank said Mah Sing’s FY23 net profit of RM218 million exceeded expectations. “The net earnings were 8 per cent above our earlier forecast and 11 per cent above the street’s estimation. “The variance in our forecast was mainly due to stronger-than-expected contribution from its property development segment. “Hence, we raise FY24 and FY25 net profit by 7 per cent to account for stronger-than-expected sales from its property development segment,” the research firm said. Year-on-year (YoY), Mah Sing’s FY23 revenue rose 12 per cent while net profit surged 38 per cent. The research firm noted that this was mainly driven by a stronger property topline (15 per cent YoY), which was contributed by higher property sales and revenue recognised for projects under construction. Further, Mah Sing’s operating loss of the manufacturing division was narrower at RM5 million in FY23 compared to an operating loss of RM23 million in FY22, mainly due to ongoing cost optimisation measures  of its glove-making operation. Year-to-date (YTD), Mah Sing has secured new sales of RM2.3 billion (+7 per cent YoY), exceeding its earlier target of RM2.2 billion. The significant sales contributors are M Astra (23 per cent), Meridin East (18 per cent), M Senyum (11 per cent) and M Vertica (11 per cent). The research firm also noted that Mah Sing launched RM2 billion worth of properties in FY23 with a commendable take-up rate ranging from 84 per cent to 100 per cent. For FY24, Mah Sing is setting a higher sales target of at least RM2.5 billion, supported by planned launches of RM2.8 billion. Meanwhile, the company’s unbilled sales fell 4 per cent quarter-on-quarter (QoQ) to RM2.3 billion, representing a fair cover ratio of 1x FY24 property development revenue. “We maintain a Buy call on Mah Sing with a higher fair value (FV) of RM1.25 from RM1.06 a share previously based on a 45 per cent discount to our rolled-forward sum-of-the-parts (SOP)-based valuation. “We made no changes to our neutral 3-star environmental, social and governance (ESG) rating. “The FV implies a FY25 price-to-earnings (PE) of 11x, at parity to the average of mid-cap property stocks currently,” AmInvestment Bank said.

KUALA LUMPUR: Property developer Sunsuria Bhd posted a net profit of RM1.6 million for the first quarter (Q1) ended December 31, 2023 (FY24) from RM1.1 million posted in the same quarter last year. The lower net earnings growth rate was due to the higher profit attributable to minority interest as a 51 per cent held subsidiary carries out the Bangsar Hill Park project. For Q1 FY24, Sunsuria’s revenue increased to RM137.3 million compared to RM78.9 million recorded in the same quarter year. This growth was primarily driven by advancements in the construction progress for its ongoing residential projects of Tower A, D, and E of Bangsar Hill Park, along with the integrated mixed development of Sunsuria Forum 2 in Setia Alam. Additionally, new projects launched last year, such as Seni Residences at Sunsuria City and Sunsuria Kejora Business Park (Phase 1), a semi-detached industrial development in Puncak Alam, have contributed to the uptick in revenue for the quarter. Furthermore, the sale of completed inventories, including Tangerine Suites and Giverny Walk at Sunsuria City, also contributed positively to the Group’s revenue. Sunsuria recorded a three-fold increase in profit before tax (PBT) to RM13.8 million for Q1 FY24 compared to RM4.5 million previously in correspondence with the higher revenue. Group chief executive officer Tan Wee Bee said the company kicked off FY24 with promising results, achieving RM114.3 million in property sales during Q1, driven by contributions from completed projects, ongoing developments, and new launches. “Our unbilled sales as of December 31,  2023, reached RM889.5 million, supporting future earnings visibility as construction progresses. “Looking ahead, our focus remains on seeking development opportunities in locations prioritising customer satisfaction and convenience. “With an extensive land bank inventory spanning 2,052.3 acres and a potential gross development value (GDV) of RM8.00 billion, we are poised for new opportunities. “Sunsuria maintains a prudent approach, continually monitoring economic conditions and market trends to navigate challenges and capitalise on opportunities within Malaysia’s dynamic economic landscape,”  Tan said in a statement. In a strategic move for corporate development, Sunsuria announced in January this year the proposed acquisition of an additional 33.0 per cent equity interests in Bangsar Hill Park Development Sdn Bhd (BHPD). This property development company owns and develops the Bangsar Hill Park development project with a total GDV of approximately RM2.9 billion. Currently holding a 51 per cent stake, Sunsuria’s ownership in BHPD will rise to 84 per cent upon completion of the acquisition. This strategic step aims to consolidate BHPD’s financial performance further, ensuring an increased contribution to Sunsuria’s net profit. “Recognising the promising potential of the Bangsar Hill Park project, we aim to leverage our extensive property expertise for further value creation,” Tan said, emphasising Sunsuria’s commitment to strategic growth and continued success.

KUALA LUMPUR: Sime Darby Property Bhd (SDP) posted revenue of RM3.4 billion and an operating profit of RM606.4 million for the financial year ended December 31, 2023 (FY23). This marks its second consecutive year of positive results following its FY22 record of RM436.2 million operating profit. The company achieved RM3.3 billion in sales, surpassing its RM2.7 billion sales target. Year-on-year (YoY) net profit grew by 29 per cent, totalling RM407.9 million compared to RM315.8 million in the previous year. SDP declared total dividends of 2.5 sen per share in FY23. The company’s FY23 revenue marked a 25 per cent YoY improvement, with profit before tax (PBT) registering a 33 per cent YoY increase to RM610.3 million. The increase in revenue and PBT is primarily attributed to the robust sales performance and higher site progress in major townships within the property development segment, supported by contributions from non-core land monetisation activities. SDP group managing director Datuk Azmir Merican said the company’s performance, coming on the heels of FY22’s results, demonstrates its operational and financial competencies, against the backdrop of an uncertain operating environment in 2023 as a result of supply chain constraints, foreign exchange movement and labour issues. “We set high targets, and are pleased to have far exceeded these expectations. Our results reflect our execution capability, and equally important, our SHIFT25 targets continue to progress well and remain on track,” he said in a statement. In FY23, SDP achieved higher revenue and profitability, driven by the property development segment contributed to 94 per cent of total revenue and a 33 per cent YoY increase in PBT. In the investment and asset management (IAM) segment, KL East Mall’s 90 per cent occupancy rate contributed to the segment’s revenue of RM107.8 million, with PBT recorded at RM15.8 million. The leisure segment’s revenue grew by 11 per cent YoY to RM93.8 million. SDP launched products worth RM4.0 billion in gross development value (GDV), of which 17 per cent comprised industrial products in Elmina Business Park, Bandar Bukit Raja, and Serenia City in Selangor,  Hamilton Nilai City and Nilai Impian in Negeri Sembilan and Bandar Universiti Pagoh in Johor. Residential landed, and high-rise products recorded a notable average take-up rate of 73 per cent for the same period, with Emilia in Nilai Impian and Teja in SJCC recording a 100 per cent take-up rate. SDP’s FY23 sales achievement of RM3.3 billion comprised a diversified product mix, including residential landed 36 per cent, high-rise residential 27 per cent, and industrial products 31 per cent. The industrial and high-rise residential segments recorded improvements, contributing 15 per cent and 2 per cent growth YoY, amounting to RM1.0 billion and RM889 million, respectively. Overall bookings as of February 4, 2024,  stood at RM1.9 billion. As of December 31, 2023, SDP maintained its unbilled sales of RM3.6 billion, providing further earnings visibility for the next three years. Completed inventories stood at RM390.3 million in GDV, while cash balances stood at RM603 million with a strong operating cash flow, excluding land acquisition, of RM617 million. SDP recorded a net gearing ratio of 23 per cent. On the international front, SDP’s Battersea Power Station project achieved £243 million (~RM1.4 billion) of residential sales in 2023. FY23 was a pivotal year for the project, with more than eleven million visitors welcomed since October 14, 2022. “Our SHIFT25 transformation journey is delivering results, and this is driving our optimism, despite the challenges that our sector may face in FY2024 and beyond. “It has taken a great deal of energy and effort to arrive at where we are today, and we are in a prime position to grow for the long term,” Azmir said. SDP declared a second single-tier dividend of 1.5 sen per share in Q4 FY23 bringing  the total dividends for FY23 to 2.5 sen per share, amounting to RM170 million.

KUALA LUMPUR: Property developer Radium Development Bhd (RDB) posted a net profit of RM7.89 million for the fourth quarter (Q4) ended December 31, 2023 (FY23) while profit before tax stood at RM15.77 million. Despite a minor revenue dip due to ongoing projects such as R Suites Chancery Residences, Vista Adesa @ Desa Timur, and Radium Adesa @ Desa East Residences, RDB showcased a strong PBT for the quarter. Additionally, the company maintained an impressive gross gearing ratio of 0.05 times, reflecting its financial stability and strategic management amidst project dynamics. Furthermore, Radium Global Sdn Bhd (RGSB), a subsidiary of RDB, recently acquired land at Old  Klang Road in June 2023, signalling the company’s commitment to growth and enhancing shareholder value. The launch of this project is expected in the first half of 2024. “We are confident in our company’s sustained growth trajectory, with a focus on launching and selling two new projects in 2023: R Suites Chancery Residences in Ampang, with an estimated gross development value (GDV) of RM500 million, and Vista Adesa @ Desa Timur and Radium Adesa @ Desa East Residences in Sungai Besi, with an estimated GDV of RM1 billion,” RDB group managing director Datuk Gary Gan Kah Siong said in a statement. Moreover, RM109.3 million from the initial public offering (IPO) proceeds have been allocated to develop a 145-room boutique hotel seamlessly integrated into a mixed-development project in Ampang, Kuala Lumpur. This strategic move aims to tap into a rejuvenated revenue stream from Kuala Lumpur’s tourism sector, complementing the company’s existing property development portfolio. Vista Adesa, launched in May 2023, has achieved a take-up rate of nearly 60 per cent, equivalent to a GDV of approximately RM219 million. Similarly, Radium Adesa, launched in  June 2023, has garnered a take-up rate of 78 per cent, representing a GDV of RM447 million. “The Vista Adesa project aligns with the government’s strategic objective of enhancing homeownership among Malaysians. “The project encompasses the provision of economical residential units valued at  up to RM300,000, comprehensively financed through the housing credit guarantee corporation (HCGS) loan programme,” said Gary Gan. On November 28, 2023, RDB formalised a Strategic Partnership Agreement with  MyCharge EV Sdn Bhd (MCSB) to integrate electric vehicle (EV) chargers across current and future developments. The company plans to install EV chargers at Vista Sentul Residences in March  2024. “Aligning with the evolving landscape of environmentally conscious businesses, our partnership with MCSB represents a significant step. “Additionally, the company is actively exploring new avenues to diversify our revenue streams,” said Gary Gan. RDB’s performance and strategic initiatives demonstrate its resilience  and forward-thinking approach in the property development sector.

KUALA LUMPUR: TH Properties Sdn Bhd (THP), a wholly-owned subsidiary of Pilgrims Fund Board, signed a sale and purchase agreement (SPA) with four companies that are investing in Bandar Enstek, Negeri Sembilan, kick-starting the first quarter land sale of the township into high gear.   The four companies, namely GoBuilders Netsoft Sdn Bhd, Educ8 Group Sdn Bhd, Malindo Airways Sdn Bhd and Meta Legends Sdn Bhd, purchased plots of industrial and agriculture land in Bandar Enstek totalling RM70.25 million. Epsom College in Malaysia, via Educ8 Group, acquired 30 acres of land, besides its existing 50 acres, for the campus’ future expansion plan. At the same time, Meta Legends, a commercial developer, purchased 2.25 acres of agricultural land for future commercial development. Malindo Airways purchased 4.134 acres of land in phase 1 of techpark@enstek for its proposed training and in-flight catering complex within the township’s industrial park, while GoBuilders Netsoft, a cold chain logistics technology company, purchased 13.43 acres of land in phase 2 of techpark@enstek. Kartini said the land deals are a significant achievement for Bandar Enstek after the company successfully launched phase 3 of techpark@enstek in November last year. “To date, techpark@enstek phase 1 has been fully sold, and phase 2 is 91.5 per cent taken up. “Bandar Enstek is fast becoming the choice location for big names such as Epsom College, Coca-Cola, Mahsuri Foods, Purecircle Sdn Bhd, Farm Fresh Bhd, Kellogg’s Malaysia, Ajinomoto Malaysia, Dutch Lady Milk Industries Sdn Bhd, Mac Food Services and many more due to its strategic location. “The addition of these three new investors will be a boon to the economic development of the area specifically and Negeri Sembilan state as a whole,” she said after the signing ceremony. The companies are expected to bring in more than RM420 million of future investment and create more than 2,000 jobs in Bandar Enstek. Aminuddin said the involvement of TH Properties in bringing in investment through Bandar Enstek and techpark@enstek is a significant contributor to the economic development of Negeri Sembilan. He noted that the entry of investors into Bandar Enstek will increase the state’s income and enhance the area’s educational and socioeconomic conditions. The SPA signing ceremony today underscores a collective commitment of TH Properties to the development of the township and its synergistic effort to create a robust ecosystem that is conducive to fostering sustainable growth.

KUALA LUMPUR: Property developer MGB Bhd saw its net profit surge three-fold, reaching RM51.1 million for the fourth quarter (Q4) ended December 31, 2023 (FY23) on the back of profit before tax (PBT) of RM69.2 million. Earnings per share improved from 2.55 sen to 8.25 sen for FY23, resulting in a price-to-earnings ratio of 10.6 times, based on the closing share price of RM0.87. After three consecutive quarters of positive financial performance, the growth momentum culminated in Q4 FY23, with revenue soaring by 109.7 per cent to RM305.3 million year-on-year (YoY). Higher contributions from the construction, trading, and property development segments drove this surge. The construction and trading segment recorded a 73.5 per cent increase in revenue, reaching RM241.5 million, while the property development segment recorded a nine-fold improvement, amounting to RM63.9 million. Consequently, the PBT and net profit surged 170.1 per cent and 259.9 per cent, reaching RM18.4 million and RM13.7 million, respectively. MGB recorded revenue of RM971.8 million for the full year, marking a 58.6 per cent increase from the previous year’s RM612.8 million. This substantial growth was primarily driven by a 45.4 per cent increase in revenue from the construction and trading segment, amounting to RM856.2 million. The surge was propelled by Idaman BSP, KITA Sejati, Prestige, and KITA Mekar projects. Furthermore, the property development segment’s revenue saw an impressive surge of 385.5 per cent to RM115.6 million, attributed to higher progress billings for the Idaman Melur and Idaman Cahaya Phase 1 projects, along with the delivery of vacant possession for Laman Bayu Phase 3 and Phase 4 projects. MGB group executive chairman Tan Sri Ir (Dr) Lim Hock San said this net profit is the highest the company has recorded thus far, thanks to its operational efficiency and strategic decision-making. “These positive results reflect the dedication and hard work of every member of the MGB family. Each individual, from our skilled workforce to our visionary leadership team, has been pivotal in driving the company’s success. “We are excited about the opportunities and confident in capitalising on them. With a solid track record of success, a strong team, and a clear strategic vision, we can navigate any challenges arising from uncertainties and seize the vast potential that awaits us,” Lim said in a statement. Moving into 2024, Lim said the company is cautiously optimistic about continue delivering commendable financial performance. He said this is supported by an outstanding order book of approximately RM1.2 billion and unbilled sales of RM0.7 billion from ongoing property projects with a gross development value (GDV) of approximately RM1.2 billion across the board. “Additionally, the two purchase orders that we received from Sany Alameriah totalling RM119.55 million for the supply and installation of 400 villas in Roshn Alarous development, north of Jeddah, is very encouraging to our performance and branding. “This should contribute positively to our revenue for 2024, and as our first international order, we look forward to applying our expertise in construction and  industrialised building system (IBS) precast technology to deliver the best product to our customers,” Lim said.

KUALA LUMPUR: Pelaburan Hartanah Bhd (PHB), the operational arm of Yayasan Amanah Hartanah Bumiputera, attained long and short-term corporate credit ratings of AAA and P1, respectively, from RAM Rating Services Bhd. The assigned ratings, accompanied by a stable outlook, reflect PHB’s robust financial health in meeting its financial obligations, supported by its strategic role in carrying out the government’s mandate to increase Bumiputera ownership and participation in the country’s commercial real estate sector. PHB group managing director and chief executive officer Mohamad Damshal Awang Damit said PHB’s success stems from acquiring commercial real estate in strategic locations around Malaysia. “This is achieved by maintaining financial discipline and balancing rapid expansion with prudent financial management, as seen in our robust balance sheet and optimal liquidity position, to carry out our mandate successfully,” he said in a statement. Since its incorporation in 2006, PHB has grown its real estate portfolio exponentially, reaching RM11 billion by the end of October last year and is on track to reach RM25 billion by 2030. PHB’s commitment to enabling ownership participation by the Bumiputera is realised through the injection of the beneficial ownership of its real estate assets into the Shariah-compliant Amanah Hartanah Bumiputera (AHB) unit trust fund. Further, PHB’s financial position is strong, with a healthy gearing ratio of 0.28 times and significant financial flexibility in the form of a large available credit line as of December 2022 to meet its short and long-term obligations. Tangible government support through monetary and non-monetary assistance, e.g., tax exemption schemes and grants, helps fund PHB’s property acquisitions and development projects and supplement its operational cashflows. RAM Ratings chief executive officer Awang Za’aba Awang Mahmud said as the government prioritises more prudent financial management, the agency believes the domestic capital market can be a good alternative source of funding for other similar government agencies to contribute to nation-building. “PHB’s commendable credit standing demonstrates its dedication to transparency, enabling the company to expedite its expansion ambitions and provide diversification benefits to investors while also helping advance Bumiputera economic wellbeing, in line with the broader national development agenda,” he said. The AHB is currently valued at RM4.85 billion, benefiting over 70,000 Bumiputera investors in Malaysia with a stable stream of yearly dividends ranging from 4.7 per cent to 7.5 per cent between 2011 and 2023.

KUALA LUMPUR: Property player UEM Sunrise Bhd has collaborated with Alliance Bank Malaysia Bhd to partner in the Alliance Home Complete programme. This partnership signifies progress in making home ownership easily accessible and enhances the home-buying experience. This financing solution aims to offer flexibility to homeowners by providing additional loans of up to 10 per cent of the property value, or a maximum of RM150,000. UEM Sunrise chief executive officer Sufian Abdullah said an initiative designed to empower homeowners to customise their living spaces for renovations and interior design, we ensure they are worry-free of initial cash outlay. “The primary objective at UEM Sunrise is to create homes that cater to the diverse needs and aspirations of our customers. “We hope that this creative collaboration with Alliance Bank, would help our customers with the extra boost to help them settle in their dream homes better,” he said in a recent statement. Sufian said partnering with Alliance Bank to offer alternatives beyond the conventional financing solutions is part of the company’s ongoing commitment to empower home-buyers in not only reducing financial burdens but also making their homeownership journeys hassle-free and enjoyable. Alliance Bank group chief consumer banking officer Gan Pai Li said the bank aims to provide financing packages that meet its customers’ evolving needs. “With Alliance Home Complete financing, homeowners shall gain immediate access to funds in realising their dream homes. “This exclusive offering is coupled with Alliance Bank’s mortgage products, to ensure a more streamlined and efficient application experience for the homebuyers. “Moreover, customers can now enjoy lower interest rates with us upon purchasing UEM Sunrise’s green-certified properties”, she said. UEM Sunrise is optimistic about the Alliance Home Complete programme, envisaged to drive better take-up rates for the company’s participating projects. The projects include 2023’s key launches in Klang Valley such as The MINH, The Connaught One, and Serene Heights Intrika, while Aspira Gardens, Aspira Parkhomes and Senadi Hills 2A are based in Johor.