Mah Sing mulls HK listing of manufacturing biz

The manufacturing segment would include the group’s recently-ventured rubber glove undertaking, plastics and other healthcare-related businesses

By NUR HANANI AZMAN / Pic BLOOMBERG

MAH Sing Group Bhd may list its manufacturing division on the Hong Kong Stock Exchange within five years.

Its ED Datuk Steven Ng Poh Seng said the manufacturing segment would include the group’s recently-ventured rubber glove undertaking, plastics and other healthcare-related businesses.

“We are looking to list our manufacturing segment in Hong Kong given now we export plastics and glove products to the global market.

“The manufacturing division is 100% owned by Mah Sing at the moment and it will eventually be put under a separate management,” he told a media briefing on the group’s manufacturing plant progress yesterday.

Mah Sing is making significant headway in its proposed diversification into the glove-making business and is on track to meet its production target of April 2021.

The property developer has so far received US Food and Drug Administration (FDA) Certificates of Registration for polymer (nitrile) patient examination glove and latex patient examination glove from Registrar Corp.

Mah Sing will seek the shareholders approval for the new business venture at a forthcoming EGM as the contribution from the glove business is expected to account for 25% or more of the group’s net profit.

The company forecasts that 75% of its financial year ending 2021’s (FY21) earnings will come from its existing plastics and core property business, with the remaining 25% from its new rubber glove venture.

Currently, Ng said 95% of the group’s total profit is generated by its property segment and the rest is derived from its plastic division.

“The demand for gloves would likely remain strong post-pandemic especially with stricter regulations and higher awareness on the importance of hygienic practices.

“The majority of our production would be exported to the US, Euro-pean countries, Japan, South Korea and other countries in the region,” he said.

Mah Sing’s new venture will be spearheaded by Mah Sing Health- care Sdn Bhd, a wholly-owned subsidiary of Mah Sing Plastics Industries Sdn Bhd, with plans to install 12 production lines that have a capacity to produce up to 3.68 billion pieces of gloves per annum, or 38,000 pieces of gloves per production line per hour within the year in Phase 1.

The first six production lines are on track to be operational as planned in the second quarter of 2021 (2Q21), followed by another six

lines expected to be ready in 3Q21. Mah Sing CEO Datuk Ho Hon Sang further said the group is targeting a second phase of the proposed expansion plan when demand outstrips supply for Phase 1.

“Phase 2 could accommodate another 12 new production lines and increase the capacity up to another 3.68 billion pieces of gloves per annum.

“If further demand permits in the future, Mah Sing Healthcare will gradually expand up to 100 production lines as part of future expansion plans,” he said.

Meanwhile, Ho said the property industry is recovering in line with better economic outlook in 2021.

“We have done well with our recently launched new projects as they are in the right location and are priced affordably. These include M Adora in Wangsa Melawati, M Luna in Kepong, Kuala Lumpur, and Acacia Phase 2 in Meridin East, Johor. With our healthy balance sheet, we will continue to look out for prime landbank for affordably priced products,” he added.

Minister in the Prime Minister’s Department (Special Functions) Datuk Seri Mohd Redzuan Yusof, who was also present at the event, said he looks forward for more home-grown companies to follow in Mah Sing’s footsteps while simultaneously contributing to Malaysia’s overall economic growth.

“Since the outbreak of the Covid- 19 pandemic this year, the demand for personal protective equipment and medical gloves has been rising significantly.

“According to the Malaysian Rubber Glove Manufacturers Association, global demand for gloves is estimated to reach 360 billion pieces this year, an increase of 21.62% from 2019 of 296 billion pieces of gloves,” he said.

As at August this year, Malaysia’s total glove exports rose 59% year-on-year (YoY) in terms of value, while quantity increased 29% YoY.

Malaysia’s export revenue is also expected to hit RM29.8 billion this year on continued strong demand for gloves globally.

Mah Sing’s share price ended 3.33% or three sen higher at 93 sen yesterday, valuing the property developer at RM2.26 billion.


Read our earlier report

Mah Sing plans for glove futher expansion