Mah Sing posts decade-high RM2.51b sales in FY2025, sets RM2.76b target for 2026

PETALING JAYA (March 2): Mah Sing Group Bhd delivered its strongest annual sales performance in a decade, achieving RM2.51 billion in new property sales for the financial year ended Dec 31, 2025 (FY2025), a 4% year-on-year (y-o-y) increase.

Profit before tax (PBT) rose 13.6% to RM382.9 million from RM337.1 million previously, while revenue remained broadly stable at RM2.52 billion. In the fourth quarter ended Dec 31, 2025, the group recorded PBT of RM99.7 million on revenue of RM665 million, it said in a media release last Friday.

Unbilled sales stood at RM3.24 billion as at end-2025, providing earnings visibility over the near term.

Margin resilience despite early-stage launches

Property development revenue came in at RM2.0 billion compared with RM2.01 billion a year earlier. Despite the marginal dip, operating profit improved 9.8% y-o-y to RM418.6 million from RM381.3 million.

The group attributed the softer revenue recognition to a higher contribution from newly launched projects that remain at early construction stages. Revenue is expected to strengthen progressively as these developments advance.

Key contributions during the year were derived from projects in the Klang Valley in Sentul, Setapak, Kepong, Cheras, Rawang, Salak Tinggi, and Bangi, as well as Johor Bahru, and Penang.

Of Mah Sing’s "M Series", some are mature developments that provided steady billing in FY2025, others are newer launches contributing to their unbilled sales buffer.

Here is the breakdown of the specific projects by location:

The Klang Valley (central region)

*Sentul: M Centura, and M Arisa (both freehold) are the landmark projects here. The newer M Aria is also part of Mah Sing’s Sentul pipeline.

*Setapak: M Astra was a primary contributor (highlighted for its 89% QLASSIC score), and the recently launched M Azura is expected to drive future revenue.

*Kepong: M Luna and M Nova. M Nova reached its "topping-out" milestone in 2025, accelerating its revenue recognition.

*Cheras: M Vertica, known for having the largest facility deck in Kuala Lumpur, has been a massive driver of volume sales.

*Rawang: M Aruna (township) and the continued phases of M Panura

*Salak Tinggi: M Senyum, a 100-acre landed residential township focused on affordable double-storey terrace houses

*Bangi: Southville City, a mega-township where newer phases like M Sinar are currently being developed

Johor (southern region)

*Johor Bahru/Skudai: M Tiara (colonial-themed terrace houses) and M Minori (Japanese-concept serviced apartments in Seri Austin)

*Pasir Gudang: Meridin East, its largest township (1,313 acres), with active phases like Erica East, Jasmine, and Allamanda

Penang (northern region)

*Batu Maung/Island: M Vista and the high-end Ferringhi Residence 2

*Newer pipeline: M Zenni (Batu Maung), and M Terra are key parts of its focus on the island’s northern and southern corridors.

"Our strong liquidity position, with approximately RM1.21 billion in cash and bank balances, allows us to execute our existing pipeline while remaining agile in pursuing selective land acquisitions that fit our fast-turnaround development model," founder and group managing director Tan Sri Leong Hoy Kum said in the report.

Additionally, group CEO and executive director Datuk Voon Tin Yow said more than 14,000 units were delivered between 2022 and 2025, underscoring the group’s execution capacity across township and high-rise developments.

2026 pipeline anchored by RM3.45b launches

For 2026, Mah Sing has set a higher sales target of RM2.76 billion, supported by RM3.45 billion worth of planned launches across the Klang Valley, Penang, and Johor.

Upcoming projects are slated for Sentul, Old Klang Road, Setapak, Puchong, Penang, and Johor, alongside new phases of ongoing developments.

Here is the breakdown of the new launches and sequential releases for 2026:

New project launches for 2026

*Old Klang Road, KL: M Aurora, a freehold serviced residence featuring "dual-key" units and a Northern Lights-inspired design. Prices are indicatively set from RM468,800.

*Setapak, KL: M Mira, the group’s fifth project in the area (following M Astra and M Azura). It has an estimated gross development value (GDV) of RM300 million and is slated for a 2H2026 launch.

*Puchong, Selangor: M Hana, a transit-oriented development (TOD) located in Puchong Perdana, positioned near the LRT station as a follow-up to the successful M Terra.

*George Town, Penang (island): *M Cora, a mixed development near Karpal Singh Drive, located just 450m from a future Mutiara LRT station. Prices start from RM426,000.

*Batu Maung, Penang (island): M Zenni, a serviced residence targeting the Bayan Lepas industrial workforce, with units starting from RM530,800

*KL city centre: Corus Hotel site, a landmark redevelopment into premium freehold serviced apartments with a GDV of RM1.28 billion. Units are expected to start from RM898,000.

*Kulai, Johor: MS Industrial Park @ Kulai, a massive joint venture with KLK Land Sdn Bhd within the Johor–Singapore Special Economic Zone (JS-SEZ), featuring industrial plots and factories on 419.15 acres of freehold industrial land with an estimated GDV of RM2.26 billion

New phases of ongoing developments

*Skudai, Johor: M Tiara 2, the second phase of its colonial-themed landed development, offering double-storey terrace and cluster homes

*Bangi, Selangor: M Sinar (Southville City), continuing the momentum of this mega-township with new high-rise residential blocks

*Semenyih, Selangor: M Legasi, rolling out new phases of landed double-storey link homes within this 500-acre master-planned township

*Sentul, KL: M Aria, releasing subsequent blocks to meet the high demand for freehold affordable housing in the central corridor

Financial discipline and dividend continuity

In 2025, Mah Sing secured approximately RM6.4 billion in GDV across six land acquisitions including sites in Penang, Setapak in KL, and Kulai. They are targeted for launch in 2H2026, consistent with the group’s quick turnaround development model..

Mah Sing ended FY2025 with RM1.21 billion in cash, bank balances and short-term investments, and net gearing of 0.26 times.

The board declared a 5 sen dividend for FY2025, translating into close to a 50% payout ratio for the third consecutive year. This marks the group’s 20th consecutive year of distributing at least 40% of annual profit as dividends.

Research houses: Execution visibility, industrial upside in focus

Research houses were generally constructive on the results, noting that earnings came in within expectations while sales momentum remained intact.

Analysts highlighted that the RM3.24 billion unbilled sales provide near-term earnings visibility, while the RM3.45 billion planned launches for 2026 offer replenishment of the earnings pipeline.

Several research firms noted that margin expansion despite flat revenue signals improving cost management and disciplined product positioning. They also pointed to Mah Sing’s quick turnaround model as a mitigating factor in a more selective property market environment.

The group’s industrial expansion in Kulai was viewed as strategically aligned with increased activity within the JS-SEZ. Analysts said industrial developments typically carry lower execution risks, and may provide steadier cash flow visibility compared with residential projects.

Research coverage also highlighted the group’s healthy balance sheet, citing its low net gearing of 0.26 times and strong cash position as supportive of further landbanking and development rollouts without excessive leverage.

Dividend continuity—particularly the near 50% payout ratio and two-decade track record of at least 40% distribution—was viewed positively from a shareholder return perspective.

Here is a breakdown of their specific conclusions:

1. TA Research: "The top sector pick"

*Earnings visibility: Highlighted that the RM3.24 billion unbilled sales represents an 8-year high, providing "clear forward earnings certainty" and a solid buffer for the next two years.

*Valuation gap: Argued the stock is significantly undervalued, trading at a steep discount despite reaching a decade-high sales record.

*Investment conviction: Maintained a "buy" call with a TP of RM1.72, naming Mah Sing its top pick because of its exposure to high-growth infrastructure corridors.

2. Kenanga Investment Bank: "Operational agility"

*Fast-turnaround model: Commended Mah Sing’s ability to launch projects within 6–9 months of land acquisition, describing it as a "mitigating factor" against market volatility.

*Balance sheet strength: Pointed to the low net gearing of 0.26x as a "strong war chest" that allows the group to aggressively hunt for new land in 2026 without over-leveraging.

*Rating: Reaffirmed "Outperform" with a TP of RM1.78, citing the group’s "disciplined product positioning".

3. HLIB Research: "The strategic pivot"

*Margin expansion: It noted that the 13.6% PBT growth—achieved despite flat revenue—proves the group’s "improving cost management" and shift toward higher-margin products.

*Premium re-entry: Specifically focused on the Corus Hotel site redevelopment, noting that moving into the "premium urban segment" will likely structurally lift the group's average selling prices (ASP).

*Rating: Maintained "Buy" with a TP of RM1.85.

4. CIMB Securities/CGSI: "The industrial catalyst"

*Industrial upside: Labelled the MS Industrial Park @ Kulai as a strategic masterstroke, noting that industrial projects offer "lower execution risk", and "steadier cash flow visibility" than residential units.

*Johor momentum: Highlighted that Mah Sing is perfectly positioned to ride the wave of the JS-SEZ.

*Rating: Reaffirmed "Add" (Buy) with a TP of RM1.80, pointing to the attractive 4.2%–5% dividend yield.

5. RHB Investment Bank: "Dividend reliability"

*Shareholder returns: Emphasised the 20-year track record of paying out at least 40% of profits, viewing the 5 sen dividend as a sign of management's confidence in future cash flows.

*Resilient demand: Concluded that the "M Series" remains the most resilient segment in the Malaysian property market, regardless of macroeconomic headwinds.

*Rating: Maintained "Buy" with a TP of RM1.75.

Outlook

Management expects demand for well-located residential properties to remain supported by domestic fundamentals and cross-border economic activity, especially within Johor.

With RM3.24 billion in unbilled sales, a structured pipeline of launches, and expanding industrial exposure, Mah Sing enters 2026 with strengthened execution visibility, and a recalibrated growth strategy anchored on disciplined expansion.

* "M Cora" is a tentative or working name for the project pending advertising permit and developer’s licence (APDL) approval

Editor’s note: This report is based on Mah Sing Group Bhd’s audited FY2025 results, filed on Feb 27.

No advice: Analyst views are for informational purposes only; they do not constitute financial advice.

Due diligence: Readers are advised to perform independent research before making investment decisions.

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