Mah Sing FY21 net profit up 71% to RM161mil

“With stronger sales and a rebound in construction activities, we expect to deliver even better performance this financial year 2022,’’ said Mah Sing’s founder and group managing director Tan Sri Leong Hoy Kum (pic) in a statement.

PETALING JAYA: Mah Sing Group Bhd’s net profit surged 70.5% to RM160.86mil for the financial year ended Dec 31, 2021 (FY21) from RM94.34mil a year earlier, boosted by its new property sales which returned to the pre-pandemic level of RM1.6bil.

Revenue for the year came up to RM1.75bil compared with RM1.53bil a year ago.

Earnings per share stood 4.39 sen compared with 0.87 sen previously.

The group declared a first and final dividend of 2.65 sen per share for 2021.

In the fourth quarter ended Dec 31, 2021, it reported a net profit of RM40.01mil compared with RM26.85mil in the previous corresponding quarter while revenue rose 13.7% year-on-year to RM537.42mil from RM472.78mil earlier.

“With stronger sales and a rebound in construction activities, we expect to deliver even better performance this financial year 2022,’’ said Mah Sing’s founder and group managing director Tan Sri Leong Hoy Kum in a statement.

The group said its growth was driven primarily by strong execution, the success of its M-Series of affordably priced projects, and effective digital marketing initiatives.

Its new property sales of RM1.6bil is a 45% increase compared with the RM1.1bil sales in 2020, and an increase from the 2019 pre-pandemic sales of RM1.5bil.

“As the economy recovers and shows encouraging signs of returning to normalcy, we plan to launch RM2.4bil worth of properties in 2022,’’ Leong said.

The target is to achieve RM2bil new property sales this year, which is a 25% growth from 2021.

Leong pointed out that the price points for its project would be attractive, with 60% of properties priced below RM500,000, and 94% below RM700,000.

The group is gearing up its new launches and construction activities with several deliveries of vacant possession slated for this year.

As at end 2021, the group had unbilled sales of RM1.9bil which added to earnings visibility for Mah Sing.

It has a strong pipeline of 21 projects to support sales growth and its planned new launches included M Senyum in Sepang, M Astra in Setapak, M Nova in Kepong, M Panora in Rawang, remaining phases for Ferringhi Residences in Penang and double-storey link homes in Meridin East, Johor Baru.

For FY21, the property development segment recorded operating profit of RM259mil on the back of revenue at RM1.34bil, which was a 64% and 13% increase respectively from a year earlier.Its manufacturing segment recorded revenue of RM370mil compared with RM288mil in the previous year.

This was mainly contributed by higher sales of plastic pallets and automotive parts led by pent-up demand from essential and automotive industries, while glove sales also contributed to the increase in the manufacturing segment, it said.