KUALA LUMPUR: An increase in new property sales has renewed Mah Sing Group Bhd’s confidence that it will achieve its RM2 billion target for this year.
The property segment of the group saw RM550 million in sales for the second quarter ended June 30 (Q2), bringing the total for the first half (H1) to RM1 billion.
This was also the highest quarterly sales recorded since 2017.
The group’s Q2 revenue rose 23% to RM542 million for a profit before tax (PBT) of RM59.8 million compared with RM438.7 million in revenue and a PBT of RM58 million in the same quarter of the preceding year.
The group’s manufacturing segment recorded a revenue of RM214 million, an increase of 19% or RM34.9 million from RM179.1 million in the previous year’s corresponding period.
The company’s revenue was registered at RM975.2 million for H1 2022 to mark a 14% or RM123.2 million gain against RM852 million in H1 2021.
For the six-month period ended June 30, the group said its property development segment recorded an operating profit of RM148.1 million on the back of RM746.2 million in revenue.
It said the higher property sales and revenue recognition of property projects under construction, as well as the completion of construction costs for certain contracts, helped to drive revenue higher.
Company founder and group managing director Leong Hoy Kum associated the group’s performance with the recovery momentum driven by border re-openings, its new launches of homes at affordable prices and the good take-up of its other ongoing projects.
“Completed inventories from the South City and Ferringhi Residence in Penang, Sierra Perdana, Meridin @ Medini and Mah Sing i-Parc in Johor also contributed,” added Leong.
The company said its net gearing was healthy at 0.34 times as of June 30 with unbilled sales of about RM2.16 billion to support liquidity further and provide future revenue visibility.
Following its acquisition of a new freehold project, M Minori in Johor Bahru in June, with an estimated gross development value of about RM469 million, the company intends to enhance its development pipeline growth with more selective and disciplined acquisitions.