KUALA LUMPUR (Aug 30): Mah Sing Group Bhd’s net profit for the second quarter ended June 30, 2021 (2QFY21) more than tripled to RM40.4 million from RM12.82 million a year ago, underpinned by higher property sales.

Its quarterly revenue also rose 46.9% to RM438.67 million from RM298.62 million a year ago, its filing to Bursa Malaysia showed.

Earnings per share stood at 0.55 sen, against losses per share of 0.59 sen.

The group said both revenue and operating profit for property development in 2QFY21 were higher than 2QFY20, mainly driven by higher property sales and revenue recognition of ongoing property projects under construction.

The development projects which mainly contributed to the group's results include M Vertica in Cheras, M Centura in Sentul and Meridin East in Johor. Other projects which also contributed include M Oscar in Off Kuchai Lama, M Aruna in Rawang, M Arisa in Sentul, M Luna in Kepong, M Adora in Wangsa Melawati, Southville City in KL South, Ferringhi Residence and Southbay City in Penang, Sierra Perdana, Meridin @ Medini and Mah Sing i-Parc in Johor.

For the half year ended June 30, 2021 (1HFY21), the group’s net profit surged 94.28% to RM80.68 million, from RM41.53 million a year earlier, while its revenue grew 27.21% to RM852 million from RM669.75 million.

Earnings per share stood at 2.21 sen, against losses per share of 0.17 sen.

The group did not declare any dividend for the latest quarter.

Mah Sing said in a statement that the group has successfully recorded new property sales to-date of approximately RM1.06 billion for the first eight months of 2021, while property sales for the first half of 2021 almost doubled to RM800.9 million in comparison with RM418.6 million in the same period last year.

“Our continuous efforts in adopting digital marketing campaigns in the first half of the year have panned out well and put us on track to meet our RM1.6 billion sales target this year,” said Mah Sing's founder and group managing director Tan Sri Leong Hoy Kum.

He also said the two new lands the group acquired this year — M Senyum in Bandar Baru Salak Tinggi, Sepang and M Astra in Setapak — are targeted to be launched in the fourth quarter of 2021.

“We are confident that they will be well received as the demand for the affordable segment continues to persist,” he added.

With disciplined financial management and a healthy balance sheet, he said, the group is eyeing more land as part of the strategy for continuous growth, with Greater Kuala Lumpur, Klang Valley, Johor and Penang being the focus areas.

According to the statement, the group has a remaining landbank of 2,045 acres with a remaining gross development value and unbilled sales totalling approximately RM24.45 billion which can provide earnings visibility for at least eight years as at June 30, 2021.

The group is cautiously optimistic that its property projects will continue to attract buyer interest mainly due to their strategic locations, affordable price points with attractive packages, innovative design and layout.

Meanwhile, the group’s healthcare business unit, Mah Sing Healthcare Sdn Bhd has made steady progress in the commercialization of its glove manufacturing business.

According to the group, the glove manufacturing factory in Kapar, Klang has commenced operations in May.

Mah Sing Healthcare's 12 high-speed production lines under Phase 1 have an annual production capacity of up to 3.68 billion pieces of gloves once fully completed.

Mah Sing's chief executive officer Datuk Ho Hon Sang said the group has a new state-of-the-art factory as the foundation of its glove manufacturing business.

“With our global certifications, we are ready to serve the export markets such as the United States, Canada, Middle East, Europe, United Kingdom, Japan, China, Korea, Singapore, amongst others, to capture higher demand for gloves in these countries," he added.

He also believes 2021 will be an exciting year for the group as it showed its commitment to be a long-term player in the glove business and continues to grow its network globally.

“We are also more than ready to receive more orders as we have the capacity to cater to the global glove demand in the near future," he said.

Looking ahead, he said the demand for personal protective equipment including gloves is expected to see structural increase, driven by potential factors such as fears of re-infection, adaptation to new norms, higher health awareness and hygiene compliance requirements for healthcare and non-healthcare sectors such as aviation, food and beverages, retails, tourism and hospitality.

At noon break, Mah Sing fell one sen or 1.21% to 81.5 sen, valuing the group at RM2 billion.