Leong: The group has maintained a robust balance sheet with ample liquidity.
PETALING JAYA: Mah Sing Group Bhd
is eyeing more landbank expansion, particularly across the Klang Valley, Johor and Penang, to strengthen its pipeline of residential and industrial developments.
Founder and group managing director Tan Sri Leong Hoy Kum said the group’s financial strength will provide a solid foundation for its continuous landbank expansion.
“The group’s strategic land banking activities are closely aligned with market opportunities and future growth,” he told StarBiz.
So far in 2025, Mah Sing has acquired two prime freehold lands with a combined gross development value of RM1.6bil.
The first was in January for the group’s M Aria development in Sentul (with the land measuring 2.78 acres), followed by the Corus Hotel (1.48 acres) site in Jalan Ampang in August.
Leong said these strategic acquisitions reaffirmed the group’s commitment to building a strong presence in prime, high-growth locations.
“With our prudent capital management, the group has maintained a robust balance sheet with ample liquidity, resulting in a cash balance of approximately RM1.12 bil as of August 2025, coupled with a low net gearing of 0.23 times as of June 30, 2025,” he said.
Mah Sing is principally involved in property development and the manufacture of high-tech plastic in Malaysia and Indonesia, as well as the manufacture and trading of gloves and related healthcare products.
The group’s property sales in the first half of financial year ended June 30, 2025 (1H25), climbed 12.4% to RM1.15bil, compared with sales in the first six months of last year.
Bolstered by the successful launches of its M Series projects, the higher property sales underpinned the group’s 1H25 revenue of RM1.22bil, up from RM1.14bil in the year-ago period, as well as a net profit of RM132.06mil, compared with RM120.26mil in 1H24.
Segmentally, operating profit from the property development business was RM211.5mil on the back of revenue of RM983.8mil.
Meanwhile, the group’s manufacturing segment posted revenue of RM222.2mil, which was a 10.8% increase over the same period in the previous year.
During the second quarter of financial year ended June 30, 2025, Mah Sing’s net profit came to RM66.02mil, against RM60.21mil in the year-ago quarter, while earnings per share rose to 2.58 sen from 2.37 sen previously.
Revenue during the quarter was RM565.92mil compared with RM578.39mil in the year-ago quarter.
MBSB Research in a recent report noted that Mah Sing is anticipated to record stronger new sales in 2H25.
“Management is confident that its sales target of a minimum of RM2.65bil this year is achievable, as new sales are anticipated to be stronger in 2H25.
“This is on the back of pipeline launches that include M Aurora in Old Klang Road, M Aria in Sentul and M Zenni in Penang, as well as launches of new phases of ongoing projects,” the research house said.
“On the other hand, unbilled sales of RM2.91bil provide 1.1 years’ worth of earnings visibility.”
Commenting on Mah Sing’s data centre segment, TA Research said negotiations with potential operators are ongoing for both outright land sales and build-to-lease arrangements.
“Tariff uncertainties have prolonged due diligence, but management stressed discussions remain active, with hopes of securing an agreement by year-end. We believe a successful deal could emerge as a medium-term re-rating catalyst,” the research house said in a recent report.
Going forward, Leong said the group sees strong demand for all its M-Series projects.
“Our launches are strategically located in prime, well-established areas with excellent connectivity, focusing on key growth regions such as Klang Valley, Johor and Penang.
“Our projects are positioned near major public transport hubs and highways, ensuring convenience and accessibility. These locations are carefully selected to support sustainable community living and enhance the living lifestyle of our homebuyers.”
Leong said the group is committed to delivering innovative and affordable homes that address evolving market needs.
“With a focus on first-time homebuyers and families seeking to upgrade, we maintain a disciplined approach to pricing to ensure our developments remain accessible to our homebuyers.”
He said Mah Sing’s broad portfolio of high-rise residential and integrated townships is designed to serve a “diverse buyer segment.”
“Building on our M-Series momentum, the group expanded its market reach by offering an upgraded Premium M-Grand product, targeting broader demographics including upgraders, investors and foreign buyers.”
Leong emphasised that Mah Sing’s track record was built on delivering more than 60,000 homes over the years.
“This is something not easily replicated by others.
“We do not rest on our laurels. In fact, we are very careful to match our launches with market demand.”
As a rule of thumb, Leong said Mah Sing “launches new blocks when its current blocks are at least 70% taken up”.
“Currently, our projects are generally 90% taken up, and the strong registration of interest for new projects proves that there is still very good demand for our properties.
“The best part is that 90% of our M Series are priced below RM700,000 and 46% are priced below RM500,000.”
Additionally, Leong said the group’s offerings are highly focused in areas with a large captive market.
“Our products are well designed to meet market demand.”
Going forward, Leong said Mah Sing remains cautiously optimistic about the property market outlook for the rest of 2025.
“On the demand side, Bank Negara Malaysia’s recent decision in July 2025 to reduce the overnight policy rate by 25 basis points to 2.75% has improved affordability and improved homebuyers’ purchasing sentiment.”
Furthermore, he said Malaysia’s relatively stable economy and continued government support for homeownership and infrastructure improvements, such as public transport and connectivity projects, are expected to further underpin demand.
“While global uncertainty remains in 2025, with geopolitical risks, ongoing trade policies and domestic concerns such as inflationary cost-of-living pressures from subsidy rationalisation, the property market is expected to remain resilient.
“Stable employment conditions, civil servant wage growth and the flexible Employees Provident Fund Account 3 initiative are anticipated to help mitigate these challenges,” said Leong.
