Mah Sing Group Bhd has revealed plans to launch more projects in the affordable segment like Acacia link houses in Meridin East, Johor and Carya in M Aruna, Rawang, for the rest of 2020.
The property company believes that the Home Ownership Campaign’s reintroduction, the low interest rate environment as well as the property-friendly measures under the National Economic Recovery Plan stimulus package are positive for the property market.
In the third quarter of 2020, Mah Sing saw its net profit drop to RM27 million from RM50 million over the same period in 2019, reported The Malaysian Reserve.
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Revenue also declined to RM388 million from RM415 million last year, on the back of the Movement Control Order’s lingering impact when progress at all project sites grind to a halt for almost two months.
“The strict lending environment also affected sales conversion which weighed on revenue recognition,” it said in a Bursa Malaysia filing.
With property sales for the period at RM847.1 million or 77% of its RM1.1 billion sales target for 2020, the group is confident that it will achieve its sales target, said Mah Sing MD Tan Sri Leong Hoy Kum.
“The group should also benefit from the five years’ stamp duty waiver for properties priced below RM500,000 for first homebuyers as introduced in Budget 2021,” he said as quoted by The Malaysian Reserve.
Mah Sing’s balance sheet is at RM1.13 billion in cash and bank balances including investment in short-term funds. It has a remaining landbank of 1,996 acres (807.75 ha) with unbilled sales and remaining gross development value totalling RM24.34 billion as of 30 September 2020.
Meanwhile, the group’s Mah Sing Healthcare Sdn Bhd is making progress to commence glove production in April next year since the installation of initial lines has already started.
“The first six production lines are expected to be ready for operation as early as the Q2 2021, followed by another six production lines expected to be ready by Q3 2021,” he said.
“These 12 production lines are Phase 1 of Mah Sing’s proposed diversification into gloves and have a maximum production capacity of up to 3.68 billion pieces of gloves per annum.”
The group’s glove manufacturing business is expected to generate sales for the group since it is slated to begin operations as early as the second quarter of 2021.
For the year-to-date period, Mah Sing’s net profit declined to RM72.26 million from RM155.35 million over the same period last year. Revenue also dropped to RM1.06 million from RM1.35 million previously.
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