Mah Sing re­ports net profit of RM77mil for sec­ond quar­ter

The Star Malaysia - StarBiz - - News -

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.

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