Mah Sing’s post RM40.4m in net profit for 2Q21

by SHAFIQQUL ALIFF / pic by MUHD AMIN NAHARUL

MAH SING Group Bhd’s net profit for the second quarter ended June 30, 2021 (2Q21) jumped to RM40.4 mil, against RM12.82 mil posted a year ago.

In filing Bursa Malaysia today,the group’s revenue rose to RM438.67 mil, from RM298.62 mil a year ago mainly  driven by higher property sales and revenue recognition of ongoing property projects under construction.

It stated the development projects which mainly contributed to the group’s results include M Vertica in Cheras, M Centura in Sentul and Meridin East in Johor.

“Other projects which also contributed include Sierra Perdana, Meridin @ Medini and Mah Sing i-Parc in Johor, Ferringhi Residence and Southbay City in Penang,  M Oscar in Off Kuchai Lama, M Aruna in Rawang, M Arisa in Sentul, M Luna in Kepong, M Adora in Wangsa Melawati, Southville City in KL South,” it said.

Mah Sing has recorded new property sales to-date of approximately RM1.06 billion for the first eight months of 2021, while property sales for the first half of 2021 almost doubled to RM800.9 mil in comparison with RM418.6 mil in the same period last year.

Its group MD Tan Sri Leong Hoy Kum said it is their continuous efforts in adopting digital marketing campaigns in the first half of the year have panned out well and put them on track to meet their RM1.6 bil sales target this year.

He said the two new lands the group acquired this year at M Senyum in Bandar Baru Salak Tinggi, Sepang and M Astra in Setapak are targeted to be launched in the fourth quarter of 2021.

“We are confident that they will be well received as the demand for the affordable segment continues to persist,” he added.

The group’s plastic segment recorded revenue of RM86.7 mil and operating profit of RM6.9 mil in 2Q 2021 as compared to revenue of RM56.2 mil and operating loss of RM4.3 mil in 2Q 2020.

The financial performance in 2Q 2020 was impacted by lockdown and write-offs of assets amounting to RM4.5 mil due to a fire incident.

The hotel segment recorded operating profit of RM0.07 million in 2Q 2021 as compared to operating loss of RM10.1 mil in 2Q 2020. The preceding year corresponding quarter results included impairment charges of approximately RM10 mil.

With RM1.06 billion property sales locked in for the first 8 months of the year, the Group is confident it will be on track to achieve the RM1.6 billion sales target for the year.

The Group is cautiously optimistic that its property projects will continue to attract buyer interest mainly due to their strategic locations, affordable price points with attractive packages, innovative design and layout.