Mah Sing Posts Higher 2Q Net Profit Of RM60.21 Mln

KUALA LUMPUR, Aug 30 (Bernama) -- Mah Sing Group Bhd has posted a higher net profit of RM60.21 million for the second quarter (2Q) ended June 30, 2024, compared to RM50.48 million in the previous corresponding period.

However, the group’s revenue fell to RM578.39 million from RM644.22 million.

In a Bursa Malaysia filing, Mah Sing said its property segment recorded a lower 2Q revenue of RM914.5 million compared to RM1.04 billion in the previous year’s corresponding period.

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“The lower revenue was mainly attributable to a higher proportion of new sales secured from new projects where contribution to revenue is expected to pick up when construction progresses past the initial stages.

“Despite a 12.2 per cent decrease in revenue, operating profit was 1.3 per cent higher mainly due to the finalisation of construction costs for certain construction contracts that are close to completion,” it said.

Mah Sing said for the six months ended June 30, 2024, the group recorded revenue of RM1.14 billion and a net profit of RM120.226 million, compared to RM1.29 billion and RM100.53 million, respectively, in the same period last year.

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Meanwhile, Mah Sing said it recorded RM1.66 billion in sales in the first eight months of 2024, positioning the company well to achieve its annual sales target of RM2.5 billion.

It said the strong sales performance was primarily driven by its M Series, which has gained popularity among first-time homebuyers.

“Mah Sing’s focus on offering products in strategic locations with attractive pricing, practical layouts, and well-designed features has proven effective in driving the group’s strong performance,” it said.

Moving forward, Mah Sing said that with multiple new launches planned, it is on track to meet its minimum sales target of RM2.5 billion for 2024 and anticipates stronger sales in the remaining months of the year.

The group added that its balance sheet remains robust, with approximately RM911.5 million in cash and bank balances as of June 30, 2024, a low net gearing ratio of 0.10x, and three new land acquisitions this year, adding close to RM10 billion in new gross development value, ensuring sustained earnings visibility.

“Free cash flows of approximately RM500 million, periodically generated from vacant possessions and property completions this year, will further enhance liquidity,” it said.

In addition to its core property development business, Mah Sing said it has ventured into the data centre sector with the launch of the Mah Sing DC Hub@Southville City.

“The group is on track for a strong FY2024 performance, supported by RM2.43 billion in unbilled sales and a solid position in the affordable housing market through its M Series developments, while the data centre portfolio is expected to enhance long-term earnings through recurring income and value-creation opportunities,” it said.

Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said the group remains dedicated to delivering exceptional value to its customers, partners, and shareholders.

“With a commitment to innovation and excellence, we strive to deliver quality products and services that meet the evolving needs of our global customer base,” he added.

-- BERNAMA