Yes Nepo. They enter the new industry at the industry's peak. It's good to deversified when their line has already saturated, but venture into the peak season, it's the one that you have to avoid. at that time we have already top four, together with many other glove companies. There are still ways for them, if they want to be back on track with their old line. Sometimes when we are being too creative, we tend to forget the base. Something still can be done in property sector
"Its manufacturing segment, however, posted an operating loss of RM8.99 million as compared to an operating profit of RM6.13 million previously, despite revenue rising 19.52% to RM214.05 million from RM179.09 million, mainly due to lower absorption of overheads due to low production volume at its glove plant. "Barring unforeseen circumstances, the group expects plant efficiency and performance to improve as production volume ramps up,” it said." https://www.theedgemarkets.com/article/mah-sings-2q-profit-strengthens-achieving-highest-quarterly-halfyear-sales-2017
That is a hell of alot of loss profit (from profit to loss) from gloves that the rest of the segment of business have to cover.
I am sure most of you have listern to this. Fair comment about a property company diversifying into gloves. Guess who? MHO they should sell it off like selling their properties, except it is ready made to go with the property for added value.
Mah Sing Bhd recorded a 32% increase in property sales in the nine months to Sept 30, 2022, which shored up the property developer's revenue and bottomline for the period.
In a statement, the group said its property sales of RM1.69bil, compared with RM1.28bil in the same period las year, was mainly owing to new launches and ongoing projects under its M Series affordable development.
"The strategic focus on M Series affordable developments in recent years has positioned the group well to capture the resilient first-home buyers' market.
For the nine months period, Mah Sing posted a net profit of RM133.27mil, up from RM120.85mil in the same period in 2021. Earnings per share was 4.57 sen versus 3.86 sen in 9MFY21.
Revenue rose to RM1.65bil as compared with RM1.22bil in the comparative period.
By segment, the property development business recorded an operating profit of RM247.5mil on the back of revenue of RM1.3bil, which represented increases of 30.8% and 41.3% year-on-year respectively.
On future plans, Leong said the group plans to launch M Astra in Setapak by 4Q22, while our upcoming developments to be launched include M Nova in Kepong, Phase 3 of M Senyum in Salak Tinggi, Phase 1B of M Panora in Rawang and Meridin East (Jasmine and Erica West) in Johor Bahru.
"We believe now is still a good time for first-time homebuyers to purchase as buying property is the best hedge against inflation and out products are mainly for customers who are buying for own stay," he added.
The group's balance sheet improved with net gearing at a new low of 0.27 times as at Sept 30, 2022.
Mah Sing has a remaining landbank of 1,916.73 acres with a remaining gross development value of RM21.12bil.
First TP achieved. Next, 0.635. Insyallah, it can break this level. With business getting better and back to normal, a dividend of 4 to 6 sen is possible. It should be back to 2018 prices, ie RM1.10+-
Active new launches, capexp under Mah Sing group, low capital gearing & profitable but the biggest question. Why price still stuck at this price range { 56 - 60} aren't any IB covering or acquiring Mah Sing shares
Exactly, is this going to ever take off past 0.60? Another $5M loss on the 3rd qtr from their glove experiment. Glove venture has been down from day 1, costing a fortune. When is that ever going to turnaround. Maybe sell the whole lot including the buiding as a package.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
MAX8186
69 posts
Posted by MAX8186 > 2022-08-19 14:47 | Report Abuse
Ex date: 15/9
2.65 sen per share. DY 4.5%. Sounds good to me.