PETALING JAYA: Industrialised Building System (IBS) specialist MGB Bhd
, a listed subsidiary of property developer LBS Bina Group Bhd, is entering 2026 with a clear growth outlook strengthened by the company’s Middle East presence.
Mercury Securities Research, which has reiterated a “buy” call on the stock with an unchanged target price of 82 sen, said the company enters 2026 with an accelerated growth outlook reinforced by two contract wins year-to-date totalling RM233.7mil.
Notably, this comes after the company announced on Wednesday a project to build villas in Saudi Arabia valued at RM34.8mil, reinforcing an outstanding order book of RM1.3bil that ensures clear earnings visibility through FY27.
The research house added that the valuation remains undemanding, with a 7% dividend yield.
“Our valuation continues to peg the construction business at 11 times financial year ending Dec 31, 2026 (FY26) price-earnings, while maintaining a 75% revalued net asset value discount for the property segment,” it said.
“This steady progress represents roughly 26% of our RM900mil replenishment target for FY26 (RM600mil for domestic projects and RM300mil for overseas ventures).”
Besides the construction segment’s target order book, MGB aims for RM1bil worth of construction work from its property development segment over the FY27 to FY29 period.
For overseas property projects, the company has advanced works for Project Alia and a 95-unit luxury project in Riyadh valued at RM170mil.
Its domestic pipeline of property development projects remains robust, carrying an estimated gross development value (GDV) of RM2bil, including Idaman Kita with a GDV of RM269mil.
“While we maintain our earnings forecasts as this win falls within our replenishment assumptions, the strategic validation of MGB’s IBS technology in the Saudi giga project ecosystem remains a key growth catalyst,” the research house said.
