Mah Sing on track to meet 2021 sales target
PETALING JAYA: Mah Sing Group BhdPre-tax profit jumped 35.1% to RM 56.2 million on revenue of RM 413.3 million for the first quarter ended March 31, 2021, from pre-tax profit of RM 41, RM 6 million and turnover of RM 371.1 million. during the previous corresponding period.
In a statement released yesterday, the group said it also achieved real estate sales of around RM 650.5 million for the first five months of 2021 to the end of May, while freezing RM 400 million for the first quarter. ended March 31, 2021.
“This is due to the high demand for affordable product offerings in strategic locations.
“Coupled with the group’s continued efforts to embrace digital marketing, Mah Sing is well positioned to meet its 2021 sales target of RM1.6 billion,” he said.
In addition, Mah Sing said his balance sheet remains healthy, with cash and bank balances and short-term fund investments standing at around RM901.2 million as of March 31.
“With disciplined financial management and a healthy balance sheet, the group will pursue its selective land banking strategy for continued growth, with Greater Kuala Lumpur and the Klang Valley being the priority areas.”
The company added that it had already acquired two new lots in the first half of 2021, preparing to take advantage of the gradual recovery in the real estate market and to meet the needs of buyers of affordable homes.
“The group’s first land deal of the year for Mr. Senyum’s 100-acre land in Bandar Baru Salak Tinggi, Sepang was completed on March 18, 2021.
“The development with an estimated gross development value (VGD) of around RM 656 million will mainly consist of two-story townhouses with a target price starting at RM 440,000.
“The interest registration and launch of Mr. Senyum is expected to take place in the fourth quarter of 2021.”
Including the two new lands acquired to date, the group has a remaining land reserve of 2,050 acres with the remaining GDV and unbilled sales totaling approximately RM 24.95 billion, which can provide visibility on profits during the month. at least eight years old.
Mah Sing’s plastics segment made a positive contribution to its performance and recorded sales of RM 91.3 million and operating profit of RM 5.1 million in the first quarter, compared to business of RM 76.1 million and operating profit of RM 3.3 million one year ago.
As for the new glove manufacturing business, the group’s subsidiary, Mah Sing Healthcare Sdn Bhd, has received its business license and other relevant licenses / permits and has recently started operations at its first glove manufacturing plant in Kapar. Klang, with the first shipment of gloves to be delivered no later than June 2021.
With its rapid turnaround and agile business model, Mah Sing Group Founder and Managing Director Tan Sri Leong Hoy Kum said the company is able to adapt quickly to changing market conditions, while aligning its business strategies on the latest market trends.
“We are confident that the two new land acquisitions will receive a favorable response when it next launches, as they meet the current needs of homebuyers and align well with the group’s current strategy of focusing on high-rise buildings. affordable sky in central business districts and affordable housing on the outskirts or suburbs.
“Meanwhile, with the government imposing the Movement Control Order (MCO) 2.0, MCO 3.0, as well as the latest round of a full two-week lockdown starting today to curb the spread of Covid-19,” this should have an impact on the recovery. progress of the local economy, including the real estate sector. “
While the three-phase nationwide lockdown is expected to be difficult for many companies, Leong said Mah Sing will be well prepared to move from the traditional way of doing things and accelerate his digitization efforts towards remote and remote work. home (WFH).
“We also hope the government will continue to step up the mass vaccination process across the country to achieve herd immunity as soon as possible and urge Malaysians to support this by getting vaccinated.”