KUALA LUMPUR: Mah Sing Group Bhd, one of Malaysia's top developers by project value, plans to aggressively grow its real estate business as market sentiment improves, amid the opening of more economic sectors and relaxation of more activities.
Founder and group managing director Tan Sri Leong Hoy Kum said Mah Sing planned to buy large tracts of land in prime locations throughout Greater Kuala Lumpur, Selangor, Johor and Penang.
This is in addition to launching 10 property projects worth over RM1 billion in the next few months.
Leong said the company had a solid cashflow, with cash and bank balances of RM807.5 million and locked-in unbilled sales of RM1.79 billion as of June 30 this year, giving it room to grow.
He also said the unbilled revenues, together with the remaining gross development value (GDV) of around RM24.45 billion from 30 current property developments, would give profits certainty for at least eight years.
"Despite our foray into the healthcare industry, we remain a formidable property player. Our debt-to-equity ratio is extremely low, and our financials are extremely strong. This opens up a lot of potentials for us to grow in the real estate market.
"My real estate business is my hobby. I'm incredibly enthusiastic about it and want to see it grow. It is nonstop for me whenever I want to do something, and I am fortunate to have a solid team working with me on this," he told the News Straits Times.
Leong said Mah Sing would focus on its "quick turnaround" business model by acquiring more land to create landed residential units, high-rise dwellings, and industrial assets.
"We have a quick turnaround plan when purchasing land so that we can work on more projects. It was akin to buying a landbank and developing a home when we invested RM160 million in a glove factory in Klang. The glove venture, on the other hand, will provide us with additional regular income and add value to the organisation " he stated
"When we invested RM160 million to build a glove factory in Klang, it is similar to buying a landbank and building a property. However, the glove venture will give us more recurring income and there will be value added to the company," he added.
Mah Sing announced its entry into the rubber glove manufacturing market in October 2020, stating that it would develop 12 production lines with a combined output capacity of up to 3.68 billion gloves per year.
Phase 1 of the company's glove manufacturing operation, which is expected to contribute to the company's profitability from 2021, consists of these 12 lines.
The glove production business, held via Mah Sing's healthcare business unit Mah Sing Healthcare Sdn Bhd, is part of the company's ambition to develop its plastic manufacturing arm.
Mah Sing's core business, according to Leong, would continue to be property development.
"Property development is our long-term strategy and with current sentiments improving, we are encouraged to launch the 10 projects, focusing on affordable homes. Glove production is part of our aim to expand our healthcare sector, and we're now considering certain medical and non-medical related items to help us establish the business for recurring revenue and long-term growth," said Leong.
The NST reported earlier this year that Mah Sing intended to spin off its healthcare division for a listing in Hong Kong within five years to raise more capital for expansion.