MST Golf declares maiden dividend of 0.5 sen as it posts 3Q net profit of RM1.6 mil

KUALA LUMPUR (Nov 22): MST Golf Group Bhd posted a net profit of RM1.63 million for the third quarter ended Sept 30, 2023 (3QFY2023), a 59.41% decline from RM4.01 million in the previous quarter as one-off costs of RM4.4 million related to its Main Market listing on July 20 were fully expensed during the period under review.

On a normalised basis, the net profit would have risen to RM6 million, representing a 50% increase from 2QFY2023, the group said in a statement accompanying its results announcement on Bursa Malaysia on Wednesday.

Earnings per share fell to 0.21 sen from 0.61 sen.

Meanwhile, revenue increased 8.44% quarter-on-quarter to RM82.34 million from RM75.94 million in 2QFY2023, thanks to the retail segment which contributed RM70.07 million, followed by the wholesale segment (RM6.64 million), golf services segment (RM4 million) and indoor golf segment (RM1.63 million).

"Geographically, the Malaysia operation contributed RM56.47 million or 68.6% of the total revenue whilst the Singapore operation contributed RM25.88 million or 31.4% of the total revenue," it said.

On a year-to-date basis, the group's net profit stood at RM14.43 million underpinned by revenue of RM244.57 million. Earnings per share stood at 2.05 sen. There are no comparable figures from the year before.

MST Golf said its retail segment accounted for RM194.35 million of total revenue, followed by the wholesale segment (RM35.92 million), golf services segment (RM10.12 million) and indoor golf segment (RM4.18 million).

Its Malaysian division contributed RM154.4 million while its Singaporean division brought in RM90.17 million of the total revenue.

The group also declared a dividend for the first time since its listing. The first interim dividend of 0.5 sen per share has an entitlement date of Dec 14 and payment date of Jan 10, 2024.

In the statement, MST Golf's executive director and group chief executive officer Ng Yap said: "“We are pleased that the group has recorded a 50% increase on normalised Patami.

"As a dominant market leader, our robust retail foundation positions us for success, exemplified by new openings in 2023 of five retail outlets, bringing our total retail footprint to 48 outlets across Malaysia and Singapore.

"Despite the prevailing economic uncertainties and escalating operating costs, we maintain a positive outlook, buoyed by the unwavering resilience of our customer base.”

He added that the group's ventures into Indonesia, Thailand, and Vietnam affirm their commitment to sustained growth.

"Progress in Indonesia, marked by combined expertise and resources with our Indonesia joint venture partner, PT Sinar Eka Selaras Tbk, poises us for a strong entry with the first outlet slated to open by December 2023, followed by four more outlets in 2024.

"In addition, our expansion into Thailand is on track with two outlets targeted for opening in 2024, and likewise our entry into Vietnam is planned for 2025. These developments reaffirm MST Golf's commitment to creating shareholder value and driving sustained growth in the regional golf retail market."

MST Golf's share price closed unchanged at 48.5 sen for a market capitalisation of RM398.12 million. The group's shares are down 40.12% or 32.5 sen from its initial public offering price of 81 sen.