Mah Sing on track to hitting RM1.1b sales target

PETALING JAYA: Mah Sing Group Bhd has achieved property sales of about RM847.1 million for the period ended Sept 30, 2020, or 77% of its 2020 sales target of RM1.1 billion.

The group has several new launches lined up in the fourth quarter, together with the well-received projects launched recently such as M Luna in Kepong and M Adora in Wangsa Melawati.

Founder and group managing director Tan Sri Leong Hoy Kum said he was confident that the group would be able to achieve its target by year end, thanks to the reintroduction of the Home Ownership Campaign and other property-friendly measures under the Penjana stimulus package as well as the low interest rate environment.

“The group should also benefit from the five years stamp duty waiver for properties priced below RM500,000 for first homebuyers as introduced in the Budget 2021,” he said.

For the third quarter ended Sept 30, the group posted a net profit of RM27 million, 46% down from RM50.02 million in the previous corresponding quarter. Revenue of RM388.2 million was also lower compared with RM415.47 million in third-quarter 2019.

For the nine-month period, the group posted profit before tax of RM106 million on the back of revenue of RM1.1 billion.

Going forward, Mah Sing plans to launch more projects in the affordable segment such as Carya in M Aruna, Rawang and Acacia link homes in Meridin East, Johor, in the remainder of 2020. This will be driven by further emphasis on digital marketing efforts to reach out to interested home buyers.

As a measure to enhance the group’s medium-term financial performance, it has also proposed the diversification of the principal activities to include manufacturing and trading of gloves and related healthcare products.

Mah Sing’s first six production lines are expected to be ready for operation as early as second-quarter 2021, followed by another six production lines expected to be ready by third-quarter 2021.

“As the factory is expected to start its operation with six production lines as early as 2Q2021, the group is in a good position to take advantage of the high spot price of gloves. Thus, Mah Sing expects the glove manufacturing business to be able to generate sales for the group relatively quickly with the projected contribution estimated to come in as early as 2Q2021,” it said.