Mah Sing 2Q net profit rises 9.8% as revenue grows 16%

PETALING JAYA (Aug 28): Mah Sing Group Bhd’s net profit attributable to shareholders rose 9.8% to RM72.47 million for the second quarter ended June 30, 2026 (2QFY2026), from RM66.02 million a year earlier, as higher property sales and progress billings lifted revenue.

Revenue grew 16% to RM656.29 million from RM565.92 million, while profit before tax increased 4.2% to RM99.56 million from RM95.54 million.

In a Bursa Malaysia filing on Friday (Aug 28), Mah Sing said the quarterly improvement was driven mainly by higher sales and progress billings recognised from its ongoing development projects.

Compared with the immediately preceding quarter, revenue rose 16.5% from RM563.10 million, while profit before tax increased 6.9% from RM93.12 million.

For the first half ended June 30, net profit attributable to shareholders increased 6.4% to RM140.55 million from RM132.06 million a year earlier. Revenue was marginally higher at RM1.22 billion, while profit before tax rose 3% to RM192.68 million from RM186.98 million.

Property sales reach RM1.32b

The group recorded RM1.32 billion in new property sales in the first half, up 15% from RM1.15 billion a year earlier, representing about 48% of its RM2.76 billion full-year sales target.

Mah Sing said it had RM3.57 billion in unbilled sales and remained cautiously optimistic of meeting its full-year sales target and delivering improved financial performance in 2026, barring unforeseen economic disruptions.

Its property development segment recorded first-half revenue of RM990.82 million, up 2.8% year on year, while operating profit edged up 0.7% to RM212.91 million.

Key earnings contributors included M Nova and M Zenya in Kepong; M Azura and M Astra in Setapak; M Legasi in Semenyih; M Senyum in Salak Tinggi; and Meridin East, M Tiara and M Minori in Johor Bahru.

Mah Sing said sales momentum is expected to be supported by upcoming launches including M Hana in Puchong, M Mira in Setapak, M Cora in Penang and M Tiara 2 in Johor Bahru, as well as future phases of existing developments.

The group is also set to launch MS Industrial Park @ Kulai in Johor as it expands its industrial property segment.

Manufacturing returns to profit

Meanwhile, the manufacturing segment returned to profitability for the first time since FY2020, recording an operating profit of RM9.69 million compared with an operating loss of RM5.17 million a year earlier, although revenue fell 8.2% to RM204.05 million.

Mah Sing attributed the turnaround mainly to improved plant utilisation in its glove business and higher average selling prices following pricing adjustments to reflect increased raw material costs.

The segment also benefited from cost optimisation following the disposal of its automotive parts business.

RM1.01b in cash and short-term funds

As at June 30, the group had RM1.01 billion in cash, bank balances, deposits and investments in short-term funds, with a net gearing ratio of 0.39 times.

Mah Sing said several project completions scheduled for the remainder of 2026 — M Nova in Kepong, phases 3A and 3B of M Senyum in Salak Tinggi and phase 4A2 of Meridin East in Johor Bahru — are expected to generate more than RM250 million in incoming vacant-possession funds.

The group said its financial position provides it with flexibility to pursue strategic landbank acquisitions in key growth locations while maintaining disciplined capital allocation.

No dividend was declared for the first half. Mah Sing paid a final single-tier dividend of five sen per share, amounting to RM128.01 million, on May 26 for FY2025.

Southville land disposal for RM617.9m

Separately, Mah Sing’s wholly-owned Southville City Sdn Bhd entered into a conditional sale and purchase agreement on Aug 20 to dispose of approximately 78.8 acres of freehold land in Mukim Dengkil, Sepang, Selangor, to WG Malaysia X Sdn Bhd for RM617.86 million cash.

The proposed disposal remains subject to the fulfilment of conditions precedent.

The land forms part of Mah Sing DC Hub @ Southville City, within the group’s 428-acre freehold Southville City township.

Mah Sing said the transaction is part of its push into digital infrastructure as a second growth engine alongside its core property development business.

The group intends to advance its “monetise, develop and own” strategy through a proposed colocation data centre with an experienced operator.

The proposed development remains at a preliminary stage and subject to further assessment, but Mah Sing said it could provide a pathway towards recurring-income digital infrastructure assets.

RM1.92b M Araya planned in Ampang

Mah Sing has also entered into conditional agreements to acquire approximately 14.38 acres of land in Ampang, Selangor, for RM186.17 million.

Subject to relevant approvals, the group plans to develop the site into M Araya, a proposed serviced apartment development with an estimated gross development value of RM1.92 billion.

Mah Sing has indicated built-up areas ranging from 700 to 1,000 sq ft, with prices starting from RM399,000.

The project is intended to cater to young professionals, first-time buyers and growing families, as well as existing homeowners seeking to upgrade while remaining within established neighbourhoods.

Registration of interest is expected to begin in the first quarter of 2027, with the development targeted for launch in 2027.

Mah Sing group chief executive officer and executive director Datuk Voon Tin Yow said the group remained focused on replenishing its landbank with strategically located opportunities that could support sustainable growth.

“M Araya is aligned with our M Series strategy, offering well-designed and attainable homes in an established location. We will continue to evaluate suitable opportunities while maintaining disciplined capital allocation,” he said.

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