Core net profit came within analysts’ expectations, making up between 26% and 28% of their full-year earnings estimates for the group.

“Losses for the manufacturing division narrowed due to effective cost management and better plant utilisation,” said RHB Investment Bank analyst Loong Kok Wen.

“(The group’s) Q1 FY2023 sales achieved MYR600.6 million – on track to meet the management’s target of MYR2.2 billion by year end,” he said.

Net profit inched up 7% compared to the preceding quarter, although revenue dipped slightly by 4.1%.

This drop in revenue was largely due to the disposal of a piece of land in George Town, Penang worth RM66.3 million in Q4 FY2022.

“Revenue for the manufacturing segment stayed largely unchanged from the last quarter, but operating losses narrowed quite significantly,” said Loong.

For the rest of the year, Mah Sing intends to launch an additional RM1.5 billion of properties from M Nova, M Minori, M Senyum, Southville and Meridin East.

MIDF Investment Bank Bhd analyst Jessica Low said that unbilled sales as of March 2023 stood healthily at RM2.2 billion, to be recognised over for the next three years.

“We are positive on earnings and new sales outlook for Mah Sing which will be driven by launches of properties within the affordable price range as demand for affordable homes remains resilient,” she said.

At 11.46am, Mah Sing’s share price was up 0.84% or 0.5 sen to 60 sen, giving it a market capitalisation of RM1.44 billion.