MAH Sing Group Bhd is set for an impressive earnings growth path with its four property projects in the Klang Valley and Johor going on full swing next year.

President and group chief executive Datuk Leong Hoy Kum said the property projects were expected to contribute to the group's double-digit earnings growth over the next few years.

By focusing on both high-end niche residential products under its Legenda series and the affordable Perdana home series, he said: ''The group hopes to generate higher revenue and profit margin as the properties have a wide market following.''

Mah Sing will soon launch a series of affordably priced semi-detached homes and bungalows under its Perdana series called Aman Perdana in Klang, Selangor.

The public can get a sneak preview of Aman Perdana's single-and double-storey semi-detached homes at the project's show village.

He said Mah Sing's competitive edge lies in its quick project turnaround time from land acquisitions to launches. The process takes only three to six months. It also prides itself in speedy project implementation and on-time delivery.

Its strength also lies in product development and market research that sets it apart from its competitors.

Leong said the group had aggressively expanded its land bank by almost three-fold by selecting quality development land in choice locations and putting on the market a series of product launches.

With good land bank and innovative trend-setting products and development concepts, Mah Sing certainly has a lot to offer in terms of earnings potential, as contribution will surge when the new projects kick off.

He said the ongoing projects - Sri Pulai Perdana and Austin Perdana in Johor and Damansara Legenda and Aman Perdana in the Klang Valley - would keep the group busy and drive earnings growth over the next three to four years.

Of the 11,000 units planned, 4,700 units have been launched since 2001, of which 71% have been sold so far.

The projects have an estimated total gross development value (GDV) of RM1.4bil, of which 54% are in the Klang Valley and the remaining in Johor. It has unbilled sales of RM292mil that would be billed over the next one to two years.

''It is our vision to be branded as a premier lifestyle developer of choice, synonymous with the building of quality homes.

''All our projects will continue to bear Mah Sing's distinctive hallmarks of good addresses, quality finishing, functional layouts and creative designs, complete with extensive landscaped parks and grand boutique entrances,'' he told StarBiz in an interview in Klang, Selangor.

The group owns a land bank of 510 acres, of which more than 50% are in the Klang Valley.

Leong said Mah Sing is constantly on the look out for more strategic land in the Klang Valley and Kuala Lumpur for future development of niche products and lifestyle township.

With revenue for the financial year (FY) ending Dec 31 expecting to hit RM300mil and exceptionally strong double-digit annual revenue growth forecast for the next two years, analysts have targeted Mah Sing's net earnings to surge to RM26.4mil this year from RM15mil in FY 2003.

For the first-half year ended June 30, Mah Sing recorded a net profit of RM11.3mil on the back of RM141.8mil revenue.

An analyst with a local brokerage said the group's strategy of targeting niche market segments, including building premium homes within gated communities in well-sought after addresses such as Damansara Legenda and affordably priced semi-detached houses and bungalows in Klang and Johor, would stand it in good stead to tap a broad section of the vast residential property market.

Since the launch of its maiden high-end niche development in Damansara called Damansara Legenda in June, sales have reached 74% and expected to hit 90% by year-end. The project features 104 three-storey semi-detached homes and 12 bungalows for a GDV of RM192mil.

''Mah Sing is on schedule to meet its forecast sales of RM430mil this year. Its high-end Damansara Legenda homes have to-date registered impressive sales with more than 70% of the units sold within three months of launch,'' he noted.

As at the third quarter this year, both its projects in Johor - Austin Perdana and Sri Pulai Perdana - have registered almost RM200mil in sales. Up to September this year, 1,772 commercial and residential units in Sri Pulai Perdana have been handed over to buyers. By December, another 479 units would be ready.

Take-up rate in Sri Pulai Perdana is 84% while Austin Perdana, which was launched in May this year, has chalked up sales of 44%.

In Aman Perdana, buyers get the chance to own semi-detached homes at affordable prices. The single-storey semi-detached homes with built-up area of about 1,301 sq ft are priced from RM260,000 while the double-storey series of more than 2,000 sq ft have a price tag from RM310,000.

During a recent pre-launch preview, response was good with many interested buyers registering for their choice units.

''The single-storey semi-detached home has a huge market but there is a severe shortage of these homes as the high cost of land in the Klang Valley makes it not viable for developers,'' another analyst said.

Source : The Star : 18/10/2004