Mah Sing posts 7% increase in 1Q net profit


Mah Sing’s founder and group managing director Tan Sri Leong Hoy Kum said the group would continue to strengthen its product leadership position in affordable homes targeting first-time homebuyers with an emphasis on attractive price points and practical design.

KUALA LUMPUR: Mah Sing Group Bhd’s net profit rose 7.2% to RM43.17mil in the first quarter ended March 31, 2022 (1Q22) from RM40.28mil a year ago bolstered by higher revenue in the quarter.

In a filing with Bursa Malaysia, the property developer said its revenue was up 4.8% to RM433.22mil in the quarter compared with RM413.31mil a year ago driven by RM450mil worth of new property sales and revenue recognition of property projects under construction, coupled with the finalisation of construction costs for certain construction contracts.

“The property sales were driven by the strong take-up rate for affordable product offerings in strategic locations with a large captive market, and well-designed features that are in line with current market demand.

“The group’s projects continued to record a rebound in sales momentum as the reopening of Malaysia’s borders and transition to the endemic phase spurred a recover in economic activities Mah Sing has planned more launches from second quarter onwards,” it said.

Meanwhile, the developer said it is on track to achieve its sales target of RM2bil this year with the right marketing campaigns and digital marketing efforts.

Mah Sing is looking forward to the upcoming launch of M Astra in Setapak, and M Nova in Kepong to capture potential spillover demand from M Adora and M Luna.Mah Sing is looking forward to the upcoming launch of M Astra in Setapak, and M Nova in Kepong to capture potential spillover demand from M Adora and M Luna.

Mah Sing is looking forward to the upcoming launch of M Astra in Setapak, and M Nova in Kepong to capture potential spillover demand from M Adora and M Luna.

Mah Sing’s founder and group managing director Tan Sri Leong Hoy Kum said the group would continue to strengthen its product leadership position in affordable homes targeting first-time homebuyers with an emphasis on attractive price points and practical design.

“The good take-up rates boost our confidence in continuing to offer similar residential properties to the market. Hence, we are constantly on the lookout for attractively priced lands which can replicate the success of our affordably priced M Series residential developments.

“We are also open to locations like the Klang Valley, Penang, Johor, Seremban, Melaka, and Perak,” he said.

It is worthy to note that Mah Sing has a strong balance sheet with cash and bank balances and investment in short-term fund of RM1.01bil.

Mah Sing M Luna modelMah Sing M Luna model

As of March 31, the group’s unbilled sales stood at RM2.03bil.

As such, Mah Sing said its unbilled sales provided near-term revenue visibility and gearing ratio of 0.33 times.

Moving forward, it would focus on environmental, social and governance as well as explore new construction technologies.

“Despite the challenges faced by the industry due to labour shortage and supply chain disruption resulting in the price hike of building materials, the group is exploring new construction technologies to become more efficient,” it said.

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Mah Sing , Leong Hoy Kum , M Adora , M Luna , M Nova , M Astra ,

   

Next In Business News

Going gets tough for Malaysia ahead of 2023
Asia’s inflation still moderate
Steady residential sector
Bermaz rides on buoyant car sales
Headline inflation for August hits 4.7% year-on-year
Steel makers fear deepening crisis
Prospects for Covid-19 vaccine companies diminish
Short position: Glove makers, MREITs
No intervention likely to actively boost ringgit
Islamic fintech growing fast in the country

Others Also Read