The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
Mah Sing Group Bhd, a prominent property developer, reported a 19.3% year-on-year (y-o-y) increase in its net profit for the second quarter of 2024 (2QFY2024), reaching RM60.2 million compared to RM50.5 million a year earlier. This growth was attributed to higher margins and lower net finance costs, despite a decline in revenue.
Key Takeaways:
Sales and Earnings Performance: Mah Sing achieved RM1.66 billion in sales in the first eight months of 2024, putting it on track to meet its full-year sales target of at least RM2.5 billion. Earnings per share for 2QFY2024 rose to 2.37 sen from 2.08 sen in 2QFY2023. However, quarterly revenue fell by 10.2% y-o-y to RM578.4 million due to new sales from projects that are expected to generate significant revenue once construction progresses beyond the initial stages.
Strong First-Half Results and Positive Outlook: For the first half of FY2024 (1HFY2024), net profit rose 19.6% to RM120.3 million, while revenue decreased by 11.7% to RM1.14 billion. Mah Sing is on track for a strong performance in FY2024, backed by RM2.43 billion in unbilled sales and several new launches that are expected to boost sales further.
Expansion and Future Growth: The group is preparing multiple new launches, including projects like M Azura in Setapak, M Tiara in Johor Bahru, M Terra in Puchong, M Legasi in Semenyih, and M Aspira in Taman Desa. These initiatives, combined with plans to expand its M Series and introduce new offerings, aim to maintain its growth trajectory and achieve the 2024 sales target.
Financial Stability and Land Acquisitions: Mah Sing maintains a strong balance sheet with RM911.5 million in cash and short-term investments, and a low net gearing ratio of 0.1 times. The group has secured close to RM10 billion in new gross development value through three new land acquisitions this year and five in 2023, ensuring sustainable earnings visibility. Additionally, approximately RM500 million in free cash flows generated from property completions will enhance liquidity.
Shares of Mah Sing rose by 4.52% to RM1.62 on Friday, valuing the group at RM4.15 billion, with the stock up over 95% year-to-date, reflecting strong market confidence in its growth prospects and financial performance.
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