KUALA LUMPUR (Aug 28): Mah Sing Group Bhd (KL:MAHSING) saw its net profit increase by 9.8% in the second quarter ended June 30, 2026 (2QFY2026), supported by higher property sales and a turnaround in its manufacturing segment.

Net profit for the quarter rose to RM72.47 million from RM66.02 million a year earlier, while revenue increased 16% to RM656.29 million from RM565.92 million. No dividend was declared.

Mah Sing said the improvement was supported by higher sales and progress billings from ongoing projects, including M Nova and M Zenya in Kepong, M Azura and M Astra in Setapak, M Legasi in Semenyih and several developments in Johor Bahru.

The property developer said it recorded RM1.32 billion in new property sales in the first half of the year, up 15% from RM1.15 billion a year earlier, which puts it on track to meet its RM2.76 billion sales target for FY2026.

For the six months ended June 30 (1HFY2026), net profit increased by 6.4% to RM140.55 million from RM132.06 million, while revenue was broadly flat at about RM1.22 billion.

Mah Sing said the group’s property development business remained its main earnings contributor, recording revenue of RM990.8 million in 1HFY2026, up 2.8% from RM963.8 million a year earlier. Operating profit increased 0.7% to RM212.9 million.

"Backed by our healthy balance sheet and strong operational performance, we remain focused on replenishing our landbank with strategically located opportunities that can support sustainable growth,” said Mah Sing group CEO and executive director Datuk Voon Tin Yow in a press statement.

Its manufacturing segment, meanwhile, returned to profitability after several years of losses. The segment posted an operating profit of RM9.7 million for 1HFY2026, compared with an operating loss of RM5.2 million previously.

Mah Sing also expects its financial position to provide room for further expansion. As at June 30, it had cash and bank balances and short-term funds of RM1.01 billion, with net gearing at 0.39 times.

On its outlook for the second half of the year, the group expects sales momentum to continue, supported by upcoming launches including M Hana in Puchong, M Mira in Setapak, M Cora in Penang and M Tiara 2 in Johor Bahru, alongside new phases of existing developments.

It also plans to enter the industrial property segment with the launch of MS Industrial Park @ Kulai in Johor.

Several projects are scheduled for completion in the remainder of 2026, including M Nova, phases of M Senyum and Phase 4A2 of Meridin East. These are expected to generate more than RM250 million in vacant possession-related cash inflows.

The group had unbilled sales of RM3.57 billion as at June 30.

Mah Sing said it remains cautiously optimistic about achieving its RM2.76 billion sales target for FY2026, while geopolitical uncertainties, global supply chain volatility and energy market fluctuations remain potential risks to the operating environment.

Mah Sing’s shares ended two sen or 1.7% higher at RM1.18 on Friday. At its last price, the group was valued at RM3.02 billion. Year to date, the counter has risen by 20.4%.