Kuala Lumpur: Mah Sing Group Bhd is targeting a 20% increase in revenue to RM600mil for the financial year ending Dec 31, 2007.

Group chief executive Datuk Leong Hoy Kum said the company was optimistic of hitting the target due to the revival of the property sector, buoyed by good local economic conditions and strong Government support.

Besides property development, Mah Sing has a plastic manufacturing business.

The property arm now contributes about 70% to revenue and the plastic division, the balance.

Leong said Mah Sing, which has seven new property developments in hand, planned to embark on more projects.

“Besides our new developments, we are also working on five existing projects,” he said after the company EGM yesterday.

Leong said the new projects in the Klang Valley and Johor had a total gross development value of Rm1.75bil.

“We believe the economic environment is conducive for us to expand our property division,” he said.

Leong said the slew of incentives announced recently had encourage property owners and businessmen to upgrade to more up-market commercial areas and houses.

These incentives include the abolishment of real property gains tax and removal of the limit on the number of residential or commercial property loans that could be obtained by non-residents.

“we are a niche and high-end developer and the relaxation of these regulations augurs well for our business,” he said.
Leong said Mah Sing’s proposed capital funding exercise, which was unanimously approved at the EGM, would enable it to have sufficient financial resources to acquire prim land and fund new projects.

The exercise involves a renounceable rights issue, a one-into-two share split and a bonus issue.

Mah Sing, which has over 500 acres for its future property developments, aims to use some of the proceeds raised to increase its land bank to cater for its expansion plans.

“We will be looking for prime land that has value-enhancing potential,” Leong said.

Asked if Mah Sing had plans to go overseas, he said “We are in talks with several parties.  There might be something in one or two years.

“If it materialises, we would like to participate on a joint-venture basis to reduce risk exposure.”

Besides the Middle East, ah Sing is eyeing countries such as South Korea and Vietnam.