by HARIZAH KAMEL / pic by MUHD AMIN NAHARUL
MAH Sing Group Bhd’s net profit for its first quarter ended March 31, 2021 (1Q21), rose 40.3% year-on-year (YoY) to RM40.28 million as revenue rose 11.37% YoY to RM413.32 million.
The developer attributed the increase to its property development segment, which generated RM311 million in revenue compared to RM281.3 million last year.
The segment’s operating profit was RM61 million compared to RM39.2 million in 1Q20.
Both revenue and operating profit for the current quarter were higher, mainly driven by progressive revenue recognition from ongoing construction progress and cost savings from the finalisation of certain construction contracts.
Mah Sing said the M Vertica project in Cheras, Kuala Lumpur; M Centura in Sentul; and Meridin East in Johor, contributed to the group’s results in the quarter.
Its plastics segment made a revenue of RM91.3 million and operating profit of RM5.1 million in the period.
For the first five months of 2021, the group achieved property sales of RM650.5 million while locking in RM400 million for 1Q21, driven by the strong demand for affordable product offerings.
“The group is well-positioned to meet its 2021 sales target of RM1.6 billion,” it said.
Mah Sing maintains a healthy balance sheet with cash and bank balances and investment in short-term funds of RM901.2 million as of March 31.
It will continue its selective landbanking strategy for continuous growth with disciplined financial management and a healthy balance sheet, where the Greater Kuala Lumpur and Klang Valley are the focus areas.
The group’s subsidiary, Mah Sing Healthcare Sdn Bhd, has commenced operation of its first glove manufacturing factory.
Six production lines are expected to be operational in 2Q, followed by another six production lines in 3Q.
The highly automated Kapar plant will have a maximum production capacity of up to 3.68 billion pieces of gloves per annum.
The glove manufacturing business is expected to contribute to the group’s earnings for the financial year 2021 on strong global demand for gloves.
Mah Sing’s shares ended 1.61% lower, or 1.5 sen, to 92 sen, valuing the company RM2.22 billion.