KUALA LUMPUR (Aug 28): Mah Sing Group Bhd’s net profit increased by 17% to RM50.48 million or 2.08 sen per share in the second quarter ended June 30 (2QFY2023), from RM43.03 million or 0.85 sen per share a year ago, on the back of higher property sales.

The group achieved robust earnings in 2QFY2023, with a pre-tax profit of RM75 million and a revenue of RM644.2 million.

This reflects a 25.5% and 18.9% improvement in pre-tax profit and revenue respectively, compared to the preceding year’s corresponding quarter.

For the first half ended June 30, 2023 (1HFY2023), the group’s net profit grew 17% to RM100,53 million, from RM86.21 million.

During the cumulative period, revenue and pre-tax profit were at RM1.29 billion and RM150.8 million respectively, as compared to RM975.2 million and RM115.8 million a year ago.

During the six-month period, property sales increased by 20% to RM1.2 billion, compared with RM1 billion a year ago.

The group’s property development division achieved an operating profit of RM177.9 million, supported by a revenue of RM1.04 billion.

This marked a 20.1% increase in operating profit and a 39.6% rise in revenue compared to the corresponding year, due to increased property sales and the gradual recognition of revenue from ongoing construction progress.

The manufacturing division experienced a 2.1% growth in revenue with RM218.7 million, compared to RM214.0 million during the same period last year.

In a statement, Mah Sing’s founder and group managing director Tan Sri Leong Hoy Kum said, “The group’s impressive sales momentum was mainly driven by the strong take-up rates for our M Series developments, as reflected in our 1HFY2023 results.

He said its affordable segment boosted its unbilled sales to RM2.34 billion.

“With more new launches planned for the second half of 2023, the group is confident of meeting the full-year sales target of minimum RM2.2 billion,” added Leong.

The group has approximately RM929.7 million in cash and bank balances, and investments in short-term funds. Free cash flows from timely completions and vacant possession of properties reduced net gearing to a low of 0.12 times as of end-June 2023.

Mah Sing said its strong financial profile and liquidity enable acceleration of growth with continued acquisition of land banks.