Founders: Tan Sri Dato' Sri Leong Hoy Kum

Listed in: Bursa Malaysia Main Market

Listing Date: 18 February 1993

Key Characteristic:

Wide range of property (residential, commercial, industrial)

Diversification to data center business

Quick ratio: Fluctuated

Net profit margin: Fluctuated

Return on equity: Improving

Debt to asset ratio: Increasing (Worsen off)

Debt to equity ratio: Increasing (Worsen off)

Quick ratio: Improving

Net profit margin: Improving

Return on equity: Improving

Debt to asset ratio: Decreasing (Better off)

Debt to equity ratio: Decreasing (Better off)

Founders: Khoo Cheng Hai, Khoo Haw Seng, Khoo Tien Sek

Listed in: Bursa Malaysia Main Market

Listing Date: 6 February 2002

Key Characteristic: Major property players in Johor

https://www.ksl.my/annual_reports

Slower down of market demand will reduce financial performance and cash flow of Mah Sing Group Berhad

Recommendation:

To build more affordable housings instead of high-tier housings only

To perform continuous market research to determine the current market demand or trend before initiating the property development process

Increase in construction raw material costs and labors costs in construction sector will give the direct impact on Mah Sing's profit margin since the contract and selling price to customers are fixed.

Recommendation:

Mah Sing can enter long-term agreement with key suppliers or to adopt industrialized building system (IBS) to facilitate a more efficient construction process.

A good cost control system should be implemented to keep track on costs.

When a more stringent loan approvals is being imposed, it will reduce buyer eligibility and bar a certain group of buyers from obtaining the loan to purchase the houses, leading to decline in Mah Sing's sales order.

Recommendation:

Mah Sing should proactively engage with regulators or authority bodies so that Mah Sing will be well informed and stay ahead on any potential policy shifts.

Consider business diversification

In Budget 2024, government has introduced a series of initiatives to encourage people can afford to own their dream house. Among the initiatives are provisions of RM10 billion under Skim Jaminan Kredit Perumahan (SJKP) to further assist the first-time homebuyers to secure housing loan easily. Besides, the extension of stamp duty exemption for first-time homebuyers valued at RM500,000 and below until December 2025 has been implemented, thereby assist homebuyers to lower down initial capital required to purchase the houses.

In Budget 2025, government has announced on the tax relief for first-time homebuyers where RM7,000 tax relief can be claimed for properties purchased up to RM500,000 and RM5,000 tax relief can be claimed for properties purchased between RM500,000 to RM750,000. The mentioned tax relied can be claimed for 3 consecutive year of assessment, starting from the year where the house installment interest is being paid, provided that the sales and purchase agreement (SPA) is signed between1 January 2025 to 31 December 2027.

2. Higher Household Debts

   According to Radhi & Sallehuddin (2024), Malaysia's household debt is stood at 84.2% of GDP, reflecting on the limited capacity in increasing the borrowings. While the loan approval rates have slightly increased to 47.2% in July 2024, coupled with inflationary pressures and potential relaxation of loan standards might lead to higher delinquencies, particularly on the category of households with lower-income.

3. Policy Uncertainty

   It is undeniable that Malaysia property market is vulnerable to political and economic uncertainty. An example is the changes in Malaysia My Second Home (MM2H) regulations with 3-tiered system, namely silver, gold, and platinum might lead to confusion among the foreign homebuyers even though the previous requirements such as liquid assets and minimum offshore income have been removed. Uncertainty or inconsistency in policy will lead to delay in decision-making, affecting interest of foreign investor, and changing of the risk appetite for financial institutions.

Quick Ratio: KSL Holdings Berhad better off

Net Profit Margin: KSL Holdings Berhad better off

Return on Equity: KSL Holdings Berhad better off

Debt to Asset Ratio: KSL Holdings Berhad better off

Debt to Equity Ratio: KSL Holdings Berhad better off