MAH SING POSTS HIGHER NET PROFIT OF RM40.16 MLN IN Q3

KUALA LUMPUR, Nov 30 -- Mah Sing Group Bhd posted a higher net profit of RM40.16 million in the third quarter ended Sept 30, 2021 (Q3 2021) from RM25.96 million last year. 

Revenue however slipped to RM364.57 million from RM388.22 million previously, it said in a filing to Bursa Malaysia.

Mah Sing said property development recorded a higher revenue of RM917.9 million in Q3 2021 mainly driven by higher property sales and revenue recognition of property projects under construction, coupled with the recognition of cost savings arising from the finalisation of certain construction contracts.

In addition, the manufacturing segment recorded a revenue of RM268.1 million against RM204.7 million in the previous corresponding period, attributed to higher sales of plastic pallets and automotive parts due to pent-up demand from essential and automotive industries.

The group said it remained positive of the prospects of the property market and is well-positioned for market recovery, leveraging on its healthy liquidity profile, demand driven property portfolio, and track record of execution.

In a separate statement, group chief executive officer Datuk Ho Hon Sang said the company had successfully secured property sales of about RM1.28 billion for Q3 2021.

“By achieving 80 per cent of its 2021 sales target in nine months, the group is confident of meeting the full-year sales target of RM1.6 billion,” he said.

In another development, Mah Sing’s wholly-owned subsidiary Myvilla Development Sdn Bhd (Myvilla) has entered into conditional sale and purchase agreement with Nation Holdings Sdn Bhd for the proposed acquisition of land in Mukim Batu, Kuala Lumpur with an estimated gross development value of RM790 million.

Mah Sing said development on the 3.27-hectare land worth RM95 million will comprise serviced residences supported by some retail component known as M Nova.

“The registration of interest and launching are targeted to be in the first and third quarter of 2022 respectively,” it said.

The company said the proposed acquisition represented an opportunity for the group to further strengthen its foothold in the high catchment area of Kepong and replenish its landbank to enhance its competitive positioning in the affordable sphere, targeting first time house buyers and end-user upgraders.

The proposed acquisition is not expected to have a material impact on the net asset of the group for the financial year ending Dec 31, 2021.

-- BERNAMA