2 Dec, KUALA LUMPUR – Mah Sing Group Berhad (Mah Sing), Malaysia’s reputable home-grown property developer, achieved property sales of approximately RM847.1 million for the period ended 30 September 2020 or 77% of 2020 sales target of RM1.1 billion, notwithstanding the challenging business and operating conditions following the impact of COVID-19 pandemic this year.
Following that, Mah Sing continues to be on track to achieve its RM1.1 billion sales target this year underpinned by several new launches lined up in the fourth quarter, together with the well-received projects launched recently such as M Luna in Kepong and M Adora in Wangsa Melawati. These affordably priced projects are expected to continue to garner the interest of homebuyers.
Mah Sing’s Founder and Group Managing Director, Tan Sri Dato’ Sri Leong Hoy Kum said, “We are confident in achieving our RM1.1 billion sales target by the financial year-end. The reintroduction of the Home Ownership Campaign and other property-friendly measures under the PENJANA stimulus package as well as the low-interest rate environment are positive for the property market. The Group should also benefit from the 5 years stamp duty waiver for properties priced below RM500,000 for first homebuyers as introduced in the Budget 2021.”
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Mah Sing’s balance sheet remains healthy with cash and bank balances and investment in short-term funds of approximately RM1.13 billion, while the Group has remaining landbank of 1,996 acres with remaining gross development value and unbilled sales totalling RM24.34 billion as at 30 September 2020. Backed by the Group’s disciplined financial management and healthy balance sheet, Mah Sing will continue exploring selective land banking for continuous growth.
At the same time, Mah Sing’s entry into proposed gloves manufacturing via Mah Sing Healthcare is making strides to meet the targeted production date of April 2021 and to cater for the pent-up demand for gloves. The first 6 production lines are expected to be ready for operation as early as 2Q 2021, followed by another 6 production lines expected to be ready by 3Q 2021. These 12 production lines are Phase 1 of Mah Sing’s proposed diversification into gloves and have a maximum production capacity of up to 3.68 billion pieces of gloves per annum
Outlook for Q42020 and FY2020
Going forward, Mah Sing plans to launch more projects in the affordable segment such as Carya in M Aruna, Rawang and Acacia link homes in Meridin East, Johor, in the remainder of 2020. This will be driven by a further emphasis on digital marketing efforts to reach out for interested home buyers.
Since early this year, the Group has also collaborated with Maybank Islamic to offer HouzKEY, an alternative financing solution under our ‘Eazy to Own’ campaign for selected Mah Sing projects. This home financing solution enables buyers to own their ideal home with easy entry and low monthly instalments, which is helpful to address home buyers’ pain points and ease their home ownership journey.
“Mah Sing remains focused and is positive that its property projects will continue to gain traction from buyers. This is mainly driven by its projects that are located in strategic locations and offering the right products that are at affordable price points in line with market demand.” Tan Sri Dato’ Sri Leong Hoy Kum elaborated.
As a measure to enhance the Group’s medium-term financial performance, Mah Sing has also proposed the diversification of the principal activities to include manufacturing and trading of gloves and related healthcare products.
There have been rapid developments by major pharmaceutical companies around the world recently towards COVID-19 vaccine discovery, which is expected to help the recovery of those affected including economies and businesses globally, given the impact COVID-19 pandemic has brought upon since early this year.
Based on an RHB Investment Bank’s report dated 19 November 2020, a deployment of COVID-19 vaccine could be a new demand source for gloves, possibly up to 18 billion pieces per annum, having assumed that 60% of the world’s population of 7.5 billion people will get the vaccine in two doses annually.
Mah Sing believes that the demand for gloves is expected to remain strong post-pandemic, following stricter regulations and higher hygienic awareness. There is also room for further growth within the industry especially in emerging markets where glove consumption per capita is still low compared to developed countries.