Mah Sing reports net profit of RM77mil for second quarter
PETALING JAYA: Mah Sing Group Bhd recorded a net profit of RM77.13mil in its second quarter ended June 30, 2018, compared with RM90.39mil in the corresponding period, while revenue stood at RM589.28mil in the second quarter of 2018 compared with RM727.14mil a year earlier.
In a filing with Bursa Malaysia yesterday, the property developer said its net profit for the six-months period ended June 30, 2018 stood at RM141.33mil compared with RM180.811mil in the previous corresponding period, while revenue in the first half of its financial year stood at RM1.17bil compared with RM1.45bil a year earlier.
Mah Sing said the decline in revenue and profit for its property development division was attributable to more new sales secured from new projects with limited contribution during their initial stage of construction.
The group achieved property sales of approximately RM942.1mil for the six-month period ended June 30, 2018,” it said.
Meanwhile, the company said the plastics segment continued to contribute positively to group performance.
“Operating profit grew by 37.2% from approximately RM8.1mil to RM11.1mil, despite a decline in revenue of 3.3% from RM147.9mil to RM143.1mil pursuant to the sales of mould, the gain of which has been included in other income.”
Commenting on the outlook for the local property sector, Mah Sing said the zero-rating of the Goods and Services Tax and the reintroduction of Sales and Services Tax is anticipated to be positive for the property sector due to the expected lower input costs, which will benefit the property developers and buyers.
“Meanwhile, the group is awaiting clearer direction for the property industry through the impending announcement of a new housing policy.”
Riding on the improvement of market sentiment, Mah Sing said it has also embarked on various marketing campaigns and schemes, as well as collaborative strategic partnerships to drive and spearhead sales.
With a healthy balance sheet as at June 2018, Mah Sing said it is in a good position to capitalise on opportunities to acquire prime landbanks and to explore joint ventures with focus on affordably-priced projects.
“For 2018, the group continues to adopt strategic and prudent approach focusing on developing affordably-priced homes for Malaysia’s young demographic and growing population who are looking for their first homes.