MGB ACHIEVES 23% PROFIT SURGE IN Q1FYE2024


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.

Construction order book healthy at RM1.19bil while total property development unbilled sales at RM0.74bil

PETALING JAYA: Construction and property development solutions provider MGB Berhad (MGB, or the group) announced its first quarter results for the financial year ending 31 December 2024 (Q1FYE2024) on May 16.

The company—a subsidiary of LBS Bina Group Berhad—which revenue stood at RM217.88mil for the quarter under review, had registered a 22.57% increase as compared to the preceding year’s corresponding quarter.

This was mainly driven by the property development segment’s nine-fold increase in revenue to RM87.59mil.

This revenue surge predominantly came from higher sales and progress in development of Idaman Melur, Idaman Cahaya Phase 1 and Phase 2, Idaman Sari and Saujana Indah Phase 1.

The construction and trading segment continues to be the main revenue driver for the group.

It accounted for 59.8% of Q1FYE2024 revenue, while the property development segment accounted for the remaining 40.2%.

In line with the higher revenue, MGB posted a profit before tax and profit after tax of RM20.59mil and RM15.11mil, an increase of 28% and 23% respectively year-on-year.

The near completion of the BSP Idaman and KITA Mekar projects, coupled with cost-saving measures undertaken by the group had spurred earnings growth.

Commenting on the financial performance, MGB Group executive chairman Tan Sri Ir (Dr) Lim Hock San said, “We are delighted to announce commendable first quarter results as we start off the new year.

Lim said that IBS has brought down MGB’s overhead costs and enhanced the quality of its precast concrete products that are being pre-fabricated in a controlled factory environment.Lim said that IBS has brought down MGB’s overhead costs and enhanced the quality of its precast concrete products that are being pre-fabricated in a controlled factory environment.

“With a steadfast commitment to excellence and unwavering dedication from MGB’s team, we have managed to set a solid foundation for the year ahead.

“This remarkable performance is a testament to our strategic vision and relentless pursuit of operational efficiency and cost optimisation.

He added that the IBS (industrialised building system) precast concrete products have reduced construction time at worksites substantially by 33% and improved consistency of the group’s construction process.

“IBS has managed to bring down our overhead costs and enhance the quality of our precast concrete products that are being pre-fabricated in a controlled factory environment,” he explained.

He added that with MGB’s first international order received for the supply and installation of precast concrete products for 400 villas in the prestigious Roshn Alarous project in northern Jeddah in February 2024, the group is ready to demonstrate its competency in manufacturing and deploying IBS precast concrete technology.

“We are optimistic that our tried and tested IBS precast concrete products will deliver the desired quality product that our customers expect and solidify our reputation in the region.”

He added, “As on Apr 30, MGB’s construction order book remained healthy at RM1.19bil, while our property development unbilled sales totalled RM740mil.

“Looking ahead, we are poised for continued growth and success.”

Lim said that with a robust pipeline of projects, a strong financial position and a talented team driving innovation and excellence, he is confident the group will continue to deliver exceptional value and achieve new milestones in the quarters to come.

This was alongside its conscious efforts to balance the group’s ESG commitment and integrate the core principles into its business model.

About MGB Berhad

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, the group 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 the 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.

It has successfully completed more than 26,000 units of properties, particularly in the affordable homes segment.

In addition, the group has also completed more than 12,000 homes using its IBS precast technology.

For more information, visit www.mgbgroup.com.my

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