KUALA LUMPUR (May 29): Mah Sing Group Bhd (KL:MAHSING) posted a 3.1% increase in its first-quarter ended March 31, 2026’s (1QFY2026) net profit to RM68.08 million despite lower revenue, supported by better cost management from nearly completed projects.
The property developer made a net profit of RM66.04 million a year earlier.
According to a bourse filing on Friday, the company said finalisation of construction costs for certain contracts helped push up operating profit 5.1% to RM108.6 million despite lower revenue.
Revenue declined by 13.3% to RM563.10 million, from RM649.69 million in the previous corresponding quarter (1QFY2025), mainly due to more sales coming from new projects, where revenue is still low in the early construction stages and will increase as the projects progress.
Key contributors during the quarter included developments such as M Nova and M Zenya in Kepong, M Astra in Setapak, M Legasi in Semenyih, M Senyum in Salak Tinggi, as well as projects in Johor Bahru including Meridin East, M Tiara and M Minori.
Other contributing developments included M Azura in Setapak, M Aspira in Taman Desa, M Terra in Puchong, Southville City in Bangi, and M Panora in Rawang.
Its manufacturing segment recorded a wider operating loss of RM1.6 million in 1Q, compared with a loss of RM1.3 million a year earlier. Revenue declined to RM89.4 million. Mah Sing said this was mainly due to lower contributions from the plastics segment following the disposal of a subsidiary involved in automotive parts production in the prior year, as part of its cost-cutting plan.
In a press statement, Mah Sing said it continues to maintain a strong financial position, with about RM1 billion in cash and investments. It also expects more than RM430 million in additional cash from completed projects over the coming months when vacant possession is handed over.
“Mah Sing will continue to leverage its diversified development pipeline and strategic market position to capture opportunities across resilient segments. We also remain actively focused on securing strategic land bank opportunities to strengthen our development pipeline in line with future growth opportunities,” said founder and group managing director Tan Sri Leong Hoy Kum.
Its unbilled sales of RM3.33 billion and a pipeline of RM2.06 billion in upcoming launches provide visibility for future earnings, said the group.
Mah Sing said it also paid about RM128 million in dividends on May 26, representing a payout ratio of close to 50%, which is the highest in 20 years and above its usual 40% minimum.
Upcoming launches and ongoing projects across the Klang Valley, Johor and Penang are expected to support sales momentum for the rest of 2026.
Shares of Mah Sing were up by one sen or 1% to 98.5 sen at intraday break on Friday, valuing the property developer at RM2.52 billion.