Mah Sing's 3Q profit up 17% as revenue strengthened amid higher cost of sales

KUALA LUMPUR (Nov 30): Mah Sing Group Bhd's net profit grew 17% to RM47.06 million for the third quarter ended Sept 30, 2022 (3QFY2022) from RM40.16 million on the back of stronger revenue, partially offset by higher cost of sales.

The group’s revenue grew 84% to RM671.12 million for the quarter under review, from RM364.57 million in 3QFY2021, but cost of sales more than doubled to RM531.76 million from RM254.75 million.

The property developer said it achieved RM640 million new sales in 3QFY2022, the highest quarterly sales recorded since 2017, while unbilled sales stood at RM2.29 billion, providing more than one year of future property revenue visibility.

For the cumulative nine-month period (9MFY2022), net profit grew 10% to RM133.27 million from RM120.85 million in the previous corresponding period, while revenue rose 35% to RM1.65 billion from RM1.22 billion.

Mah Sing said its affordable developments have seen healthy take-up from homebuyers, hence it is confident that the strong home-buying momentum especially from first-time homeowners will sustain and remain resilient in 2023.

Apart from Klang Valley, Penang and Johor, the group said it will continue to scout for and acquire new lands in Seremban, Melaka and Perak for development of affordable landed homes.

“The mid-to-long term outlook remains positive, supported by strong fundamental demand for properties due to the young demography. Demand for houses from first-time homebuyers should remain resilient,” said the group in a Bursa Malaysia filing.

At the time of writing, Mah Sing was trading one sen or 1.9% higher at 52.5 sen per share, valuing it at RM1.27 billion.