Mah Sing sees Q2 profit up 1.8% to RM90.39 million

PETALING JAYA: Mah Sing Group Bhd's net profit rose marginally by 1.8% to RM90.39 million for the second quarter ended June 30, 2017 versus RM88.82 million in the same period a year ago, thanks to lower marketing and other expenses.
Its revenue, however, declined 6% from RM773.9 million to RM727.14 million.
Mah Sing's first-half net profit came in at RM180.81 million, a 1.7% drop compared with RM183.85 million in the previous corresponding period, with revenue falling 2.2% from RM1.48 billion to RM1.45 billion.
The group achieved property sales of about RM819.3 million for the first six months.
It said in a filing with the stock exchange that its net cash position as at June 30, 2017 provides opportunities to pursue more land banking activities.
"The company is looking to lock in more land and/or to explore joint venture opportunities with focus on mid-market affordable housing projects in Klang Valley," it noted.
Mah Sing said underlying interest and demand remain strong for its product launches in the affordable and mid-range segment for the residential sector due to good concepts in prime locations with good connectivity, further spurred by innovative marketing strategies.
"The group expects a pick up in sales momentum in the second half of 2017 in line with more property launches and recent marketing initiatives such as the RM23 million celebration rewards campaign and the B.I.G Programme which provides business incentive grants to purchasers of certain commercial properties of the group," it added.
At today's market close, the stock rose one sen to close at RM1.58, with some 1.42 million shares changing hands. It has a market capitalisation of RM3.81 billion.