PETALING JAYA: Mah Sing Group Bhd’s pre-tax profit surged 35.1% to RM56.2mil on the back of a revenue of RM413.3mil for the first quarter ended March 31,2021, compared with a pre-tax profit of RM41.6mil and revenue of RM371.1mil in the previous corresponding period.
In a statement yesterday, the group said it also achieved property sales of approximately RM650.5mil for the first five months of 2021 as at end May, while locking in RM400mil for the first quarter ended March 31,2021.
“This is driven by the strong demand for affordable product offerings in strategic locations.
“Coupled with the continuous effort of the group in adopting digital marketing, Mah Sing is well-positioned to meet its 2021 sales target of RM1.6bil, ” it said.
Additionally, Mah Sing said its balance sheet continues to remain healthy, with cash and bank balances and investment in short-term funds standing at approximately RM901.2mil as at March 31.
“With disciplined financial management and a healthy balance sheet, the group will continue with its selective land banking strategy for continuous growth, with Greater Kuala Lumpur and Klang Valley being the focus areas.”
The company added that it had already acquired two new lands in the first half of 2021, gearing up to ride on the gradual recovery of the property market and to meet home buyers’ needs for affordably priced homes.
“The group’s first land deal of the year for M Senyum’s 100 acres land in Bandar Baru Salak Tinggi, Sepang was completed on March 18,2021.
“The development with an estimated gross development value (GDV) of approximately RM656mil will comprise mainly double storey terrace houses with an indicative price starting from RM440,000.
“Registration of interest and launching of M Senyum are targeted to be in the fourth quarter of 2021.”
Including both the new lands acquired to-date, the group has remaining landbank of 2,050 acres with remaining GDV and unbilled sales totalling approximately RM24.95bil, which can provide earnings visibility for at least eight years.
Mah Sing’s plastics segment contributed positively to its performance and recorded revenue of RM91.3mil and operating profit of RM5.1mil during the first quarter, compared with revenue of RM76.1mil and operating profit of RM3.3mil a year ago.
As for the new glove manufacturing business, the group’s subsidiary, Mah Sing Healthcare Sdn Bhd, has received its business license and other relevant licenses/ permits and commenced operations recently at its first glove manufacturing factory in Kapar Klang, with the first shipment of gloves to be delivered by latest June 2021.
With its quick turnaround and nimble business model, Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said the company is able to quickly adapt to the changing market conditions, whilst aligning its business strategies with the latest trends in the market.
“We are confident that both the new land acquisitions will receive favourable response during its upcoming launch, as it meets the current needs of home buyers and aligns well with the group’s current strategy of focusing on affordable high-rises in the central business district areas and affordable landed homes in the outskirts or suburban areas.
“Meanwhile, with the government imposing the movement control order (MCO) 2.0, MCO 3.0, as well as the latest round of a full two-week lockdown beginning today to curb the spread of Covid-19, this is anticipated to impact the recovery progress of the local economy including for the property sector.”
While the three-phase nationwide lockdown is expected to be difficult for many businesses, Leong said Mah Sing will be well-prepared in shifting from the traditional way of doing things and ramping up its digitalisation efforts to remote working and work from home (WFH).
“We also hope the government will continue to step up the mass vaccination process nationwide towards achieving the herd immunity soonest possible and urge Malaysians to support this by getting themselves vaccinated.”