Mah Sing's 2Q net profit up 17 pct on higher property sales

KUALA LUMPUR: Higher property sales contributed to Mah Sing Group Bhd's net profit which rose 17.3 per cent to RM50.48 million in the second quarter (Q2) ended June 30, 2023 versus RM43.04 million in Q2 2022.

Revenue for the quarter under review came in 18.9 per cent higher at RM644.22 million from RM542.01 million a year ago supported by ongoing construction progress.

For the cumulative six months, the company's net profit rose 16.6 per cent to RM100.53 million from RM86.21 million. Its revenue jumped 32 per cent to RM1.29 billion from RM975.24 million a year ago.

Founder and group managing director Tan Sri Leong Hoy Kum said Mah Sing's impressive sales momentum was mainly driven by the strong take-up rates for its M Series development.

"Our unique position in the affordable segment combined with our distinct product offering known as 'Luxury You Can Afford' have resonated with our target market, boosting our unbilled sales to RM2.34 billion, providing visible future revenue for the group.  "With more new launches planned for the second half of 2023, the group is confident of meeting the full year sales target of minimum RM2.2 billion," he said in a statement.

Mah Sing maintained a robust balance sheet with about RM929.7 million in cash and bank balances and investment in short-term funds.

In the first half of 2023, Mah Sing procured four plots of land, specifically M Terra and M Hana in Puchong, M Tiara in Johor Bahru, Glengowrie Estate in Semenyih and M Zenya in Kepong.

These acquisitions collectively add up to an approximate gross development value (GDV) of RM5 billion.

"Supported by a healthy balance sheet and confidence in our quick turnaround business model, we are actively seeking to replenish our landbanks in Klang Valley, Penang and Johor to develop residential and industrial properties," said Leong.

Mah Sing's property launches in Q2 2023 include Phase 2B of M Senyum in Salak Tinggi, Jasmine of Meridin East in Johor Bahru and Phase 2 of M Panora in Rawang.

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