Mah Sing locks in RM1b sales in 6 months

by ANIS HAZIM / pic by TMR

MAH Sing Group Bhd has locked in RM1 billion in new property sales for the first half of the year ended June 30, 2022 (1H22), up 25% from RM800.9 million in the same period last year.

The group registered sales of RM550 million for the second quarter ended 30 June 2022 (2Q22), making it the highest quarterly and half-year sales recorded since 2017.

The group was on track to achieve the full-year sales target of RM2 billion, it said in an exchange filing today.

Its 2Q22 net profit edged slightly higher by 6.5% to RM43 million, compared to RM40.4 million a year earlier, on the back of higher revenue.

Earnings per share came in higher to 0.85 sen from 0.54 sen, according to its Bursa Malaysia filing today. Mah Sing did not declare any dividend for the latest quarter under review.

Its revenue grew by 23.55% to RM542 million from RM438.67 million, underpinned by higher sales contribution from its properties.

Mah Sing founder/group MD Tan Sri Leong Hoy Kum said the strong performance was largely due to recovery momentum driven by border reopenings and its successful launches of new parcels of affordably priced homes.

“The strategic shift to a greater emphasis on our affordable M Series developments has proved as an effective and timely move in ensuring the stable performance of the group,” he said in a statement.

For the cumulative six-month period (1H22), the group’s net profit expanded by 6.85% to RM86.21 million from RM80.68 million last year, as revenue rose 14.46% to RM975.23 million compared to RM851.98 million.

Mah Sing said its property development segment recorded operating profit of RM148.1 million and revenue of RM746.2 million, which were 20% and 14% respectively higher than last year.

Meanwhile, the manufacturing segment recorded an operating loss of RM9 million from an operating profit of RM6.1 million and revenue of RM214 million from RM179.1 million in the previous year.

As of June, the group said its net gearing was healthy at 0.34 times, while unbilled sales of close to RM2.16 billion further supported liquidity and provided future revenue visibility.

“Armed with a robust balance sheet, market-led portfolio, and a focus on execution, the group is well positioned to navigate near-term volatility and uncertainties,” it added.

Mah Sing’s share closed unchanged at 60 sen today, valuing the group at RM1.46 billion.