MGB Berhad’s revenue of RM971.8mil for the full year 2023 was primarily driven by its construction and trading segment, and property development segment.
CONSTRUCTION and property development solutions provider MGB Berhad recorded revenue of RM971.8mil for the full year ending Dec 31, 2023 (FYE2023) – a 58.6% increase from the previous year’s RM612.8mil.
This substantial growth of MGB – a subsidiary of LBS Bina Group Berhad – was primarily driven by a 45.4% gain in revenue from the construction and trading segment, amounting to RM856.2mil.
The surge was propelled by projects such as Idaman BSP, KITA Sejati, Prestige, and KITA Mekar.
Meanwhile, the property development segment's revenue saw an impressive rise of 385.5% to RM115.6mil, attributed to higher progress billings for the Idaman Melur and Idaman Cahaya Phase 1 projects, along with the delivery of vacant possession for Laman Bayu Phase 3 and Phase 4 projects.
In line with the increased revenue, MGB reported a profit before tax of RM69.2mil.
MGB’s profit after tax in turn increased by three-fold, reaching RM51.1mil.
Earnings per share improved from 2.55 sen to 8.25 sen for FYE2023, resulting in a price-to-earnings ratio of 10.6 times based on the closing share price of 87 sen.
After three consecutive quarters of impressive financial performance, the growth momentum culminated in the fourth quarter of 2023 (Q4FYE2023), with revenue soaring by 109.7% to RM305.3mil year-on-year – driven by higher contributions from the construction and trading segment as well as the property development segment.
The construction and trading segment recorded a 73.5% increase in revenue, reaching RM241.5mil, while the property development segment recorded a remarkable nine-fold improvement amounting to RM63.9mil.
Consequently, profit before and after tax experienced substantial leaps of 170.1% and 259.9%, reaching RM18.4mil and RM13.7mil respectively.
“As we close off 2023, we are proud of our three-fold increase in net profit,” says MGB group executive chairman Tan Sri Ir Dr Lim Hock San.
‘Moving into 2024, we are supported by our outstanding order book of approximately RM1.2bil to date and unbilled sales of RM0.7bil from ongoing property projects with a GDV of approximately RM1.2bil across the board,’ says MGB group executive chairman Tan Sri Ir Dr Lim Hock San.
“This profit after tax is the highest ever we have recorded thus far, all thanks to our relentless pursuit of operational efficiency as well as our strategic decision-making.
“These stellar results reflect the dedication and hard work of every member of the MGB family. From our skilled workforce to our visionary leadership team, each individual has played a pivotal role in driving the group’s success.
“Looking ahead, we are excited about the opportunities that lie ahead and confident in our ability to capitalise on them.
“With a solid track record of success, a strong team, and a clear strategic vision, we are well-positioned to navigate any challenges that may arise out of uncertainties and seize the vast potential that awaits us.
“Moving into 2024, we are cautiously optimistic that we can continue delivering commendable financial performance, supported by our outstanding order book of approximately RM1.2bil to date and unbilled sales of RM0.7bil from ongoing property projects with a GDV of approximately RM1.2bil across the board.
“Additionally, the two purchase orders that we received from Sany Alameriah totalling RM119.55mil for the supply and installation of 400 villas in Roshn Alarous development north of Jeddah is very encouraging to both our performance and branding.
“This should contribute positively to our revenue for 2024, and as our first international order, we look forward to applying our expertise in construction and IBS precast technology to deliver the best product to our customers.”
