PETALING JAYA: Mah Sing Group Bhd saw its net profit improve 20% to RM215.29 million in the financial year ended Dec 31, 2023 (FY2023) from RM180.05 million.

In a filing with Bursa Malaysia today, the group said revenue jumped 12.1% to RM2.6 billion from RM2.32 billion, with its balance sheet remaining healthy with cash and bank balances and investments in short-term funds of RM981.3 million as at Dec 31, 2023.

The property development division saw marked improvement with an operating profit of RM368.4 million on the back of revenue of RM2.11 billion, which was 8.8% and 14.9% higher than the operating profit and revenue recorded a year ago.

The higher revenue and operating profit were mainly driven by property sales and progressive revenue recognition from ongoing construction progress.

Net profit for the fourth quarter rose 38% to RM64.74 million from RM46.78 million while revenue increased slightly to RM671.28 million from RM670.87 million.

For FY2023, the group achieved new property sales of RM2.26 billion, a 13% increase compared with RM2 billion, (excluding land sales of RM115 million in 2022) and the highest property sales recorded since 2016.

It also acquired six new pieces of land with a potential gross development value (GDV) of RM6.23 billion in Puchong, Semenyih, Kepong and Setapak in the Klang Valley and in Johor.

Mah Sing also acquired industrial land in Sepang, boasting a potential GDV of up to RM2 billion.

The group said it plans to launch new developments by end-2024, anticipating early contributions from the newly acquired industrial land.

Meanwhile, the group has declared a first and final dividend of 4 sen per share for FY2023, representing a 45% payout, higher than the dividend policy of a minimum of 40% for the 18th consecutive year. It said this would be paid out in May 2024.

Encouraged by the sales achieved last year, the group also projected a higher sales target of at least RM2.5 billion for 2024, underpinned by a compelling pipeline of projects in the affordably priced housing segment.

Supported by unbilled sales of RM2.33 billion and fast-track project completions, the group said it anticipates a stronger financial performance in 2024.

At the close of trading, Mah Sing’s share price was down by 4 sen or 4.37% at 96 sen, giving it a market capitalisation of RM2.32 billion.