#Update* Mah Sing 2Q net profit grows 21.4% to RM84.735m

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KUALA LUMPUR: Mah Sing Group Bhd saw its net profit grow 21.4% to RM84.735 million in the second quarter ended June 30, 2014 (2QFY14), up from RM69.826 million a year before, thanks to stronger performance in its property development division as well as plastics business.

In a filing with Bursa Malaysia today, Mah Sing said its quarterly revenue grew 48 .2% to RM705.019 million, from RM475.749 million a year ago.

For the six months period (1H FY14), the property developer also saw its net profit increase 21.2% to RM168.762 million, up from RM139.3 million in 1HFY13, due to higher profit recognition from Icon City in Petaling Jaya and M Residence @ Rawang.

The group’s revenue rose 49.9% to RM1.347 billion, from RM898.89 million last year.

It achieved property sales of about RM1.55 billion due to the focus in mass market properties at the right locations and products that are in line with market demand, it said.

Other projects that contributed to the property outfits’ results in Greater KL and the Klang Valley include M-City and M-Suites in Jalan Ampang, Icon Residence in Mont Kiara and Perdana Residence 2 in Selayang.

Mah Sing said its revenue from property development is about RM1.2 billion in 1HFY14, marking some 57.3% improvement as compared to RM758.8 million a year earlier.

“The improved revenue is attributable to the higher work progress from the group’s on-going development projects,” it said.
The group has a potential gross development value (GDV) of RM45.23 billion in the pipeline, together with unbilled sales of RM4.79 billion.

Meanwhile, the plastics segment also continued positively to the group’s revenue and operating profit. The segment’s revenue grew 4.8% to RM125 million, from RM119.3 million, as a result of higher pallet sales.

On future prospect, Mah Sing said it is well placed to benefit from the market opportunities as the group’s projects in multiple growth corridors offering the right product mix that appeal to a wide market, coupled with strong financial discipline.

The property firm added that despite expanded operations, its balance sheets remains strong with a high cash pile of about RM715.4 million, and a low net gearing at 0.21 times as at end-June this year.