PETALING JAYA: MGB Bhd, a subsidiary of LBS Bina Group Bhd involved in construction and property development, recorded profit before tax and profit after tax (PAT) of RM4.34mil and RM2.01mil, respectively, for the third quarter ended Sept 30, 2021.
This comes on the back of RM111.12mil in revenue for the quarter, despite the tumultuous effects of the Covid-19 pandemic.
Further, MGB announced a healthy cashflow, which increased four-fold to RM33.91mil from RM7.34mil recorded in the corresponding period last year.
For the nine-month financial period ended Sept 30, the group registered a significant turnover and PAT of RM405.21mil and RM16.18mil, respectively, a surge of 6.2% and 96.5% as compared to RM381.70mil and RM8.23mil for the corresponding period in 2020.
MGB group executive vice-chairman Tan Sri Lim Hock San said: “It has been a challenging quarter but delivering profitability and enhancing stakeholder value are our top priorities. We are thankful that with the implementation of the right strategies – including leveraging on our own industrialised building system (IBS) precast concrete for our construction project – that allowed us to save on costs, MGB was able to continue to report profits.
“We are cautiously optimistic on the group’s performance for the upcoming quarters as the property market has begun to recover slowly. As per the initiatives proposed in Budget 2022, the government has allocated RM1.5bil for the construction of more low-cost housing and RM2bil in guarantees for gig workers, which should bode well for the construction industry as we anticipate more developments to be built.
“Based on the Economic Outlook 2022 report, the construction sector’s growth has been estimated to be in the double-digit region in contrast to the overall economy, which has been projected to only grow modestly between 5.5% and 6.5%. We believe all these factors augur well for MGB.”
Moving forward, MGB will be focusing on the development of the Rumah Selangorku Idaman MBI projects, which was launched by the Selangor state government in October and will comprise 7,210 affordable homes in total. This provides MGB with a total estimated gross development value (GDV) of RM2.5bil.
Idaman Bandar Saujana Putra, which will be the first of six Rumah Selangorku Idaman MBI projects to be developed, will be constructed by MGB using its own IBS precast system.
Lim added: “The response has been very encouraging and we are looking forward to launching the remainder of the projects in the upcoming months.”
Meanwhile, its turnkey project to develop 1,000 acres of industrial estate in Lot Q, Kerteh Biopolymer Park, Terengganu, has a total estimated GDV of RM680mil, while its high-rise residential apartment in Molek, Johor (Zenit Molek) and its Laman Bayu double-storey housing development has an estimated RM366.5mil and RM45mil GDV, respectively.
“We are pleased that MGB’s outstanding construction order book stands at a healthy RM1.79bil. In addition, our developments are progressing steadily.
“We will push forward and bid for more projects to ensure a continuous replenishment of our order book in the years to come.”