Mah Sing's Q2 net profit more than triples

KUALA LUMPUR: Mah Sing Group Bhd's net profit more than tripled to RM40.4 million in the second quarter ended June 30 2021 from RM12.82 million in the preceding corresponding quarter.

Group revenue increased 47 per cent to RM438.7 million from RM298.6 million previousy, Mah Sing said today.

The company said it had recorded new property sales to-date of about RM1.06 billion for the first 8 months of 2021, while property sales for the first half of 2021 surged almost double to RM800.9 million in comparison with RM418 million in the same period last year.

Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said its continuous efforts in adopting digital marketing campaigns in the first half of the year had panned out well and put it on track to meet its RM1.6 billion sales target this year.

"In line with the extension of the Home Ownership Campaign until December 31 2021, and the low interest rate environment which are beneficial to the property market, we have also launched 'Mah Sing NOW' campaign as part of our efforts in driving sales in the second half of the year."

"The two new lands we acquired this year - M Senyum in Bandar Baru Salak Tinggi, Sepang and M Astra in Setapak are targeted to be launched in the fourth quarter of 2021. We are confident that they will be well-received as the demand for affordable segment continues to persist," Tan said in a statement.

Mah Sing is eyeing more land as part of the strategy for continuous growth, with Greater Kuala Lumpur, Klang Valley, Johor and Penang being the focus areas.

Tan said nearly 100 per cent of Mah Sing's employees across all its business units in property, healthcare and plastics had received the first dose of vaccination against Covid-19, and 80 per cent had completed the secod dose.

Mah Sing said it kept a healthy balance sheet with cash and bank balances and investment in short-term funds of RM807.5million as at June 30 this year.

The group has a remaining landbank of 2,045 acres with a remaining gross development value and unbilled sales totalling RM24.45 billion which can provide earnings visibility for at least eight years.

For the six months, the group's net profit surged 94.28 per cent to RM80.68 million from RM41.53 million a year earlier, while revenue increased to RM852 million from RM669.8 million in the same period a year ago.

Mah Sing said its healthcare business unit, Mah Sing Healthcare Sdn Bhd, had made steady progress in the commercialisation of its glove manufacturing business.

The glove manufacturing factory in Kapar, Klang has commenced operations in May.

Mah Sing Healthcare's 12 high-speed production lines under Phase 1 has an annual production capacity of up to 3.68 billion pieces of gloves once fully completed.

Mah Sing group chief executive officer Datuk Ho Hon Sang said it had a new state-of-the-art factory as the foundation of its glove manufacturing business.

"With our global certifications, we are ready to serve the export markets such as United States, Canada, Middle East, Europe, United Kingdom, Japan, China, Korea and Singapore, among others, to capture higher demand of gloves in these countries," Ho added.

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