Mah Sing targets Hong Kong stock market

Media briefing session on Mah Sing's glove manufacturing ventures. From left to right: Mah Sing Chief Executive Officer Datuk Ho Hon Sang, Datuk Seri Mohd Redzuan Md Yusof, Mah Sing Founder & Group Managing Director, Tan Sri Leong Hoy Kum and Mah Sing Healthcare General Manager Lawrence Khoo. — LOW LAY PHON/The Star

KUALA LUMPUR: Mah Sing Group Bhd is planning to list its manufacturing division abroad within five years after it sets up its glove-making division.

“We are exploring a listing of the manufacturing division which includes the plastic, new rubber glove and healthcare segment within the next five years.

“We hope to list on the Hong Kong Stock Exchange. We would like to list it in Hong Kong because the business is mainly for exports and we are catering for the global market, ” executive director Datuk Steven Ng told a press conference.

Besides rubber gloves, the company is also looking to venture into healthcare devices.

“We would like to make the business bigger before going for a listing. We are targeting international investors in Hong Kong, ” Ng said.

Mah Sing is expecting rubber gloves to contribute at least 25% or more to its net profit for the financial year ending Dec 31,2021.

“This is why we need to have an EGM to seek shareholders’ approval on this. We are expecting double-digit growth in the rubber glove business due to increased awareness.

“The expected growth is more than 15% due to tighter regulations by governments around the world, ” he added.

Demand for rubber gloves can still hold up despite additional supply in the years ahead.

Mah Sing said it has set a target production date of April 2021, eight months from the initial date of August 2020 to cater for the pent-up demand for gloves in the domestic and export markets.

Work at the glove manufacturing factory of 228,800 sq ft, is progressing according to schedule.

The first six production lines will be on track and operational as planned in the second quarter of 2021.

This will be followed by another six lines expected to be ready in the third quarter.

The company said the 12 production lines are a part of its proposed phase one diversification into glove-making.

It will have a maximum capacity of up to 3.68 billion pieces of gloves per year – at a speed of 38,000 pieces of gloves per production line per hour, the company said.

The capital expenditure for the first phase of the proposed rubber gloves business is estimated to be RM160mil.

It is also targeting a second phase of the proposed expansion plan when demand outstrips supply for phase one.

The second phase could accommodate 12 more new production lines and increase the capacity to 3.68 billion more pieces of gloves per year, the company said.

Meanwhile, Mah Sing’s founder and group managing director Tan Sri Leong Hoy Kum said the property market is recovering and it is still its main focus.

“The property market is recovering. In line with the economic outlook for 2021, this is positive due to the fundamentals of the country. I foresee the property market slowly pick up from the middle of next year.

“Even now, it’s improving. Confidence is coming back and we will deliver more products and continue land-banking, ” Leong said.

He noted that new projects that were recently launched such as M Adora in Wangsa Melawati, M Luna in Kepong and Acacia phase two in Meridin East had done well.

“With our healthy balance sheet, we will continue look for prime land bank for affordably-priced products.

“The proposed glove business will strengthen our manufacturing division and is expected to generate sales relatively quickly, as early as the second quarter.

“This will allow us to take advantage of the high spot price for gloves. This business will still see sustained strong demand in the future, generating more recurring and steady income for the group, ” he added.

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