"We are pleased to conclude FYE2024 on a strong note, demonstrating our ability to sustain earnings momentum,” said Lim.
PETALING JAYA: MGB Bhd, a leading construction and property development solutions provider and a subsidiary of LBS Bina Group Bhd, has announced its unaudited financial results for the fourth quarter (Q4FYE2024) and the full year ended Dec 31, 2024 (FYE2024), capping off a year of sustained growth and solid earnings momentum.
For FYE2024, MGB continued to deliver strong financial results, with revenue surpassing the RM1bil mark, rising by 6.2% to RM1.03bil from RM971.8mil.
The improvement was predominantly attributed to its property development segment’s four-fold leap in revenue to RM483.6mil from RM115.6mil last year.
This substantial growth was mainly fuelled by the accelerated progress of on-going development projects, namely Idaman Melur, Idaman Cahaya Phase 1 and Phase 2, Idaman Sari and Saujana Indah Phase 1 and Phase 2.
As a result, the segment’s profit before tax (PBT) saw a remarkable increase from RM18.6mil to RM76.6mil.
The Group’s PBT and profit after tax (PAT) in turn surged by 25.9% and 22.3% respectively, to RM87.1mil and RM61.7mil in FYE2024.
For Q4FYE2024, PBT rose by 21.3% to RM22.3mil, while PAT increased by 9% to RM14.3mil, year-on-year, on the back of a RM256.8mil revenue. Growth was largely driven by an increase in other incomes recorded during the period under review.
"We are pleased to conclude FYE2024 on a strong note, demonstrating our ability to sustain earnings momentum,” said MGB’s Group executive chairman Tan Sri Ir Lim Hock San.
“The resounding growth in our property development segment highlights MGB’s strategic shift towards high-demand affordable housing projects and state government initiatives such as Rumah Selangorku 3.0.”
Lim added, “Our core priority remains the efficient execution of all our projects, ensuring timely delivery and optimal resource utilisation.
“This is in line with our mission to push the boundaries and expectations of quality, reliability and innovation. Driven by our steadfast commitment to developing, refining and providing affordable housing solutions, we stay close to our vision to be a recognised design and build expert to set new standards.
“This is to create living spaces that can enrich life, while addressing the increasing demand for high-quality cost-effective homes that are well-designed and come with attractive packages to increase accessibility to more individuals and families.
“A point to note is that our manufacturing arm, helmed by our subsidiary, MGB Sany (M) IBS Sdn Bhd is now operating efficiently, demonstrating stability and strong industry presence. With its well-established operations, it has made a record profit before tax of RM11.5mil at the company level, reflecting its growing impact and resilience in the market.”
He explained, “We also evaluate and pursue strategic investment opportunities and partnerships that are mutually beneficial, both domestically and internationally. On the strength of our sustainable position, we have decided to revise our dividend policy.”
In line with MGB’s appreciation of shareholders’ support for the group’s growth, the company has revised its dividend policy, increasing the current minimum payout of 20% to 30% of its profit after tax and minority interests, effective from FYE2024.
For the quarter, the Board of Directors has declared a single tier interim dividend of RM0.015 per share on 591.7 million ordinary shares, amounting to RM8.99mil, which shall be paid on March 28.
As at 31 Dec 31 last year, MGB’s financial position remained robust, with cash and bank balances of RM100.2mil and net assets per share rising to RM1.02 from RM0.93 a year ago. The Group continues to maintain a solid outstanding construction order book of approximately RM1.27bil from ongoing property development projects as of to date, providing strong earnings visibility into FYE2025, whereas the Group’s property development unbilled sales stand at RM0.63bil as at Jan 31.
For more information, visit www.mgb.com.my.
