Mah Sing's 1Q net profit increases to RM40.28m

KUALA LUMPUR (May 31): Property developer Mah Sing Group Bhd’s net profit rose by 40% year-on-year (y-o-y) to RM40.28 million for the first quarter ended March 31, 2021 (1QFY21) from RM28.71 million, mainly driven by higher contribution from its property segment.

The revenue for 1QFY2021 increased by 11.37% to RM413.32 million, from RM371.13 million same period in previous year, underpinned by progressive revenue recognition from ongoing construction progress of its existing projects, coupled with the recognition of cost savings from the finalisation of certain construction contracts.

In a media statement today, Mah Sing has achieved property sales of approximately RM650.5 million for the first five months of 2021 as at end May 2021, while locking in RM400 million for the first quarter ended 31 March 2021.

The sales are 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 RM1.6 billion, said the company.

For its property development segment, the group acquired two new land deals in the first half of 2021, which are M Senyum in Bandar Baru Salak Tinggi and M Astra in Setapak, which are planned for launching in the second half of 2021.

M Senyum which sits on 100-acre land of Bandar Baru Salak Tinggi, Sepang carries an estimated gross development value (GDV) of RM656 million. It will comprise mainly of double storey terrace houses with starting price from RM440,000.

Meanwhile, M Astra in Setapak, acquired recently in May, is planned to feature mixed development comprising two blocks of services suites with retail units. Priced from RM399,000, the development carries a GDV of approximately RM618 million.

Mah Sing’s founder and group managing director Tan Sri Leong Hoy Kum remained optimistic in the second half of the year even with the implementation of full movement control order (FMCO) as the group continues to be well-prepared in shifting from the traditional way of doing things and to ramp up their digitalisation effort to accommodate work from home.

“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/suburban areas,” said Leong. 

The group has a remaining landbank of 2,050 acres with remaining gross development value and unbilled sales totalling approximately RM24.95billion which can provide earnings visibility for at least eight years. 

Meanwhile, the group's new venture in glove manufacturing is expected to be operational by 2Q2021 after receiving their business license and other permits recently. 

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