KUALA LUMPUR (June 1): Mah Sing Group Bhd's first quarter (1Q) net profit rose 7.19% to RM43.18 million from RM40.28 million a year earlier, on higher revenue from its property development business.

Earnings per share for the quarter ended March 31, 2022 increased to 1.78 sen from 1.66 sen, the group's bourse filing showed.

Revenue grew 4.82% to RM433.23 million from RM413.32 million, mainly driven by higher property sales and revenue recognition of property projects under construction, coupled with the finalisation of construction costs for certain construction contracts.

The development projects that were the key earnings contributors included M Vertica in Cheras, M Arisa in Sentul, M Luna in Kepong, M Aruna in Rawang, Meridin East in Johor, M Oscar in Off Kuchai Lama, M Adora in Wangsa Melawati and Southville City in KL South.

Other projects which also contributed included Southbay City and Ferringhi Residence in Penang, Sierra Perdana, Meridin @ Medini and Mah Sing i-Parc in Johor.

Mah Sing said its manufacturing segment recorded a revenue of RM107.6 million and operating loss of RM7.8 million in the quarter compared with revenue of RM91.3 million and operating profit of RM3 million in the previous year's corresponding period.

The revenue increased mainly on continuous strong demand for plastic pallets and automotive parts, while glove sales also contributed to the increase in revenue.

The operating loss, meanwhile, was mainly attributed to lower absorption of overhead costs at the initial phases of the glove plant's operation.

Mah Sing said the group locked in RM450 million new property sales in 1Q, driven by the strong take-up rates for affordable product offerings in strategic locations with a large captive market, and well-designed features in line with current market demand.

Looking ahead, Mah Sing's founder and group managing director Tan Sri Leong Hoy Kum said the group is well positioned to meet its sales target of RM2 billion, having planned more launches from 2Q onwards, and coupled with the right marketing campaigns and digital marketing efforts by the group.

The group is also looking forward to the upcoming launches of M Astra (from RM399,000) in Setapak and M Nova (from RM318,000) in Kepong to capture potential spillover demand from M Adora and M Luna, Leong said in a statement.

Mah Sing's share price finished one sen or 1.54% lower at 64 sen on May 31, bringing a market capitalisation of RM1.54 billion.

Edited by S Kanagaraju

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