Lim: Our commitment to operational excellence and disciplined cost control has driven substantial improvements to our bottom line.
SELANGOR: Construction and property development solutions provider MGB Bhd
(MGB) – and a subsidiary of LBS Bina Group Bhd – today announced its second quarter results for the financial year ending Dec 31, 2024 (2Q24).
During the quarter under review, Idaman Melur and Idaman Cahaya Phase 1 and 2 recorded significantly higher development progress, which resulted in a surge in the property development segment’s revenue.
The revenue leapt 11-fold year-on-year, from 2Q23’s RM13.3mil to RM149.5mil.
As a result, MGB’s overall revenue increased by 15.2% year-on-year, to RM268mil.
In tandem with the revenue growth, profit before tax (PBT) surged to RM22mil, marking a 30.6% rise from RM16.8mil in the same period last year.
The profit after tax (PAT) in turn was RM15.8mil, reflecting a solid 27.1% increase from RM12.4mil.
The group’s effort to continuously enhance and maintain operational efficiency, as well as implement cost-efficiency initiatives, are now bearing success and contributed to these positive financial results, which are reflected in improved margins.
For the cumulative six-month financial period ended June 30, 2024, MGB delivered an 18.4% increase, year-on-year, in revenue from RM410.4mil to RM485.9mil.
This was attributed to the significantly higher contribution from the property development segment from RM22.5mil to RM237.1mil, due to the higher development progress for Idaman Melur, Idaman Cahaya Phase 1 and 2, Idaman Sari and Saujana Indah Phase 1 and 2.
Consequently, PBT and PAT rose by 29.4% and 25.3%, respectively, to RM42.6mil and RM30.9mil.
Addressing the financial performance, MGB Group executive chairman Tan Sri Ir Dr Lim Hock San said, “Our second quarter financial performance demonstrates our ability to deliver consistent results.
“The strong growth momentum from our property development segment will continue with our newly launched Idaman Perdana under Rumah Idaman project.
“On the construction segment, we are pleased to have successfully completed three projects to-date, namely, Alam Ritma Perdana, Cybersouth @ KITA Mekar and Idaman BSP, with a combined gross development value of RM719.0mil.”
He also said MGB will maintain its focus on completing its current projects, backed by a sizeable order book of approximately RM1.27bil as of July 31, with property development unbilled sales of approximately RM700mil.
“Additionally, the group has secured new contracts totalling RM396.4mil year-to-date, which are expected to contribute positively to earnings over the next several years.”
He further added: “Our commitment to operational excellence and disciplined cost control has driven substantial improvements to our bottom line, culminating in our recent recognition at The Edge Centurion Club Awards 2024.
“As we progress through the year, we remain committed to expanding our affordable house developments by leveraging on our industrialised building system (IBS) precast concrete, as well as new technologies and innovative approaches to the construction process.
“MGB is cautiously optimistic in its ability to maintain its growth momentum and to achieve new milestones in the coming quarters,” he said.
“The high encouraging sales of Rumah Idaman affirms the need for more affordable housing projects, which remains a key target segment for us.
“On the international front, we remain focused on carrying out our supply and installation of precast concrete products in Jeddah, the Kingdom of Saudi Arabia, and we look forward to building our track record within the region.”
Established in 2007, MGB has evolved into a construction and property development solutions provider, primarily focusing on providing efficient and cost-effective solutions across a wide range of industries, in particular building mass market and affordable living spaces for generational living in Malaysia.
Through its subsidiaries, MGB provides a full range of design, construction and development services including design and build, project management, civil engineering, value engineering, geotechnical specialisation, and manufacturing in IBS precast concrete products.
MGB has accumulated a strong track record, with more than 15 years in design and build to general construction for residential, commercial and industrial buildings as well as infrastructure works.
The group has successfully completed more than 29,000 units of properties, particularly in the affordable homes segment.
It has also completed more than 12,000 homes using its IBS precast technology.
