Mah Sing confident of achieving Rm1.1bil target
PETALING JAYA: Property developer Mah Sing Group Bhd achieved property sales of Rm847.1mil for the period ended Sept 30, or 77% of the 2020 sales target of Rm1.1bil despite the challenging business and operating conditions caused by the Covid-19 pandemic.
“We are confident in achieving our Rm1.1bil sales target by the financial year end. 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 are positive for the property market.
“The group should also benefit from the fiveyear stamp duty waiver for properties priced below RM500,000 for first home buyers introduced in Budget 2021,” Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said in a statement.
Mah Sing is on track to achieve its target with several new launches lined up in the fourth quarter, together with the recently launched M Luna in Kepong and M Adora in Wangsa Melawati.
Its balance sheet is healthy with cash and bank balances and investment in short-term funds of Rm1.13bil.
The group has remaining landbank of 1,996 acres with remaining gross development value and unbilled sales totalling Rm24.34bil as at Sept 30.
“The group should also benefit from the five-year stamp duty waiver for properties priced below RM500,000 for first home buyers introduced in Budget 2021.” Tan Sri Leong Hoy Kum
The company will continue to explore selective land banking for growth.
It said its entry into rubber gloves manufacturing via Mah Sing Healthcare was making strides to meet the targeted production date of April 2021 and to cater for the pent-up demand for gloves.
The glove manufacturing factory is on schedule, whereby the equipment supplier has commenced fabrication of selected machinery. Installation of the initial lines has also started at the completed part of the factory.
The first six production lines are expected to be ready for operation as early as the second quarter of 2021, followed by another six production lines by the third quarter of 2021. The 12 production lines are phase one of Mah Sing’s proposed diversification into gloves and have a maximum production capacity of up to 3.68 billion pieces of gloves per annum.
It expects the glove manufacturing business to generate sales in second quarter of 2021.
On its third quarter results, the company reported a pre-tax profit of Rm40.5mil, which was higher compared with the preceding quarter of Rm22.4mil, mainly due to the resumption of operations.
Revenue of Rm388.2mil for its third quarter was also higher as compared with the second quarter of Rm298.6mil.