KUALA LUMPUR (Feb 25): Mah Sing Group Bhd's net profit increased by 4.19% to RM28.13 million in the fourth quarter ended Dec 31, 2020 (4QFY20) against RM27 million posted in 3QFY20, as it saw higher contributions from M Vertica and M Centura.
However, the increased contributions from the two ongoing projects were partially offset by the impairment and write-offs of certain assets, as well as the fair value loss on investment property totalling RM25.1 million, according to the property developer's bourse filing.
Quarterly revenue rose 21.78% to RM472.78 million from RM388.22 million in 3QFY20.
On a year-on-year basis, however, the company's net profit fell 37.46% from RM45 million in 4QFY19, despite revenue growing 6.81% from RM442.64 million, as cost of sales rose 14.74% to RM369.85 million from RM322.32 million.
Notwithstanding the weaker year-on-year earnings, Mah Sing proposed its first and final dividend of 1.66 sen per share for FY20, down 53% from the 3.55 sen it paid for FY19.
For the full FY20, the group's net profit halved to RM100.39 million from RM200.33 million in FY19, with annual revenue shrinking 14.47% to RM1.53 billion from RM1.79 billion as its property development, plastics and hotel businesses were affected by the pandemic outbreak.
The group, which achieved RM1.1 billion property sales in 2020, aims to reach RM1.6 billion sales in 2021, with 91% of products priced below RM700,000, and 51% below RM500,000.
"Planned new launches for 2021 include Tower E of M Vertica, Cheras, remaining phases of M Arisa, Sentul, Phase 2 of Cerrado Suites and Tower B Sensory Residences at Southville City @ KL South, Phase 3 of M Aruna and M Panora in Rawang, M Senyum in Bandar Baru Salak Tinggi, Sepang, serviced apartments in Southbay City, Penang and double-storey link homes in Meridin East, Johor Bahru," it said.
Currently, its landbank stands at 2,076 acres, with an estimated gross development value of RM23 billion. It also had unbilled sales of RM1.64 billion as at Dec 31, 2020.
At the time of writing, Mah Sing shares were up 0.5 sen or 0.63% to 79.5 sen apiece, bringing it a market capitalisation of RM1.93 billion.