KUALA LUMPUR (May 31): Mah Sing Group Bhd saw its net profit surged by 40.30% year-on-year (y-o-y) to RM40.28 million for the first quarter ended March 31, 2021 (1QFY21) from RM28.71 million due to a higher contribution from its property development segment.

As a result, earnings per share (EPS) rose to 1.66 sen from 0.42 sen, its Bursa Malaysia filing showed.

Quarterly revenue increased by 11.37% to RM413.32 million, compared with RM371.13 million, underpinned by progressive revenue recognition from ongoing construction progress of its existing projects, coupled with the recognition of cost savings from the finalisation of certain construction contracts.

The group, however, did not declare any dividends for the quarter. 

On a quarterly basis, the group’s net profit leapt by 43.18% from RM28.13 million for the preceding quarter, while revenue declined by 12.58% from RM472.78 million.

On its outlook, the property developer said it is on track to meet its 2021 sales target of RM1.6 billion and highlighted that it achieved new property sales of approximately RM650.5 million in the first five months of the year. 

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

“As part of Mah Sing’s efforts to drive sales, the group launched the 'Home with Mah Sing' campaign in January 2021, followed by the 'Come Home 2 Mah Sing' campaign in April 2021, whereby both campaigns offered easy payment schemes and various incentives to ease homeownership,” it said in a statement.

On the new glove manufacturing business, the group said its subsidiary Mah Sing Healthcare Sdn Bhd had received its business licence and other relevant licences/permits, commencing operations recently at its first glove manufacturing facility in Kapar, Klang. 

“Currently, execution of the glove venture is on schedule as there will be six production lines on track to be operational in 2Q21 (the second quarter of 2021), followed by another six production lines in 3Q21.

“In addition, Mah Sing Healthcare has also received the export licence from the Malaysian Rubber Board, which would facilitate the export business of the group’s glove manufacturing operations,” it said.  

At the noon break today, shares in Mah Sing traded two sen or 2.15% lower at 91 sen, valuing the property developer at RM2.21 billion.