KUALA LUMPUR: Mah Sing Group Bhd posted a higher pre-tax profit of RM47.6mil in its fourth quarter ended Dec 31,2020 compared with RM40.5mil in the same quarter of the previous year, mainly due to increased contribution from ongoing projects, M Vertica and M Centura.
Revenue of RM472.8mil for the fourth quarter was also higher, compared with RM388.2mil in the preceding quarter.
For the financial year ended Dec 31,2020 (FY20), the group posted a pre-tax profit of RM153.7mil on the back of revenue of RM1.5bil.
Mah Sing has proposed a first and final dividend of 1.66 sen per share for FY20, thus maintaining its record of paying dividend rates of at least 40% of net profit over the last 15 years.
On the property development front, revenue for FY20 was RM1.2bil while operating profit was RM148.1mil, affected mainly by the lingering impact of movement control orders where level of activities on sites were lower.
The strict lending environment also affected sales conversion which weighed on revenue recognition.
Also, contribution from matured projects like Lakeville Residence was lower as it was completed during the current year while new projects such as M Oscar, M Arisa, M Luna and M Adora were at initial stages of construction with minimal contribution.
Projects which contributed to the group’s results include M Vertica (pic) in Cheras, M Centura in Sentul, Southville City in KL South, Meridin East in Johor and Lakeville Residence in Jalan Kuching.
Other projects which also contributed include M Oscar in Off Kuchai Lama, M Aruna in Rawang, M Luna in Kepong, M Adora in Wangsa Melawati, Ferringhi Residence and Southbay City in Penang, and Sierra Perdana, Meridin @ Medini and Mah Sing i-Parc in Johor.
In a statement, the group said it achieved its sales target of RM1.1bil for FY20, driven by its strategy in digital marketing and affordable properties offered at strategic locations, namely in the Klang Valley, Penang and Johor.
In the first two months of 2021, Mah Sing also saw strong uptake in sales amounted to RM250mil.
With RM1.35bil sales in the past 14 months and in line with the better property outlook this year, the group has set a higher sales target of RM1.6bil for 2021, with 91% of products priced below RM700,000, and 51% below RM500,000.
Mah Sing will focus on affordable landed homes in the outskirts/suburban areas and affordable high rises in the central business district areas.
It will also continue with its quick turnaround business model to acquire more prime land at strategic locations with its strong cash and bank balances of RM1.16bil as at Dec 31,2020.
Planned new launches for 2021 include Tower E of M Vertica, Cheras, the remaining phases of M Arisa, Sentul, Phase 2 of Cerrado Suites and Tower B Sensory Residences at Southville City @ KL South, Phase 3 of M Aruna and M Panora in Rawang, M Senyum in Bandar Baru Salak Tinggi, Sepang, service apartments in Southbay City, Penang, and double storey link homes in Meridin East, Johor Bahru.
Meanwhile, its plastics segment recorded revenue of RM288.2mil and operating profit of RM17.2mil in FY20.
Its glove manufacturing factory in Kapar, Klang is on track to meet the target production date of April 2021, and is expected to contribute positively to the group from the second quarter of 2021.
The first six production lines are on track to be operational in the second quarter, followed by another six lines expected to be ready in the third quarter.