Profit after tax up 79.20% year-on-year
22 on-going construction and property development projects
_________________________________________________
SELANGOR, 22 February 2022 – MGB Berhad (“MGB” or the “Group”) (a subsidiary of LBS Bina Group Berhad), a construction and property development solutions provider, today announced its fourth quarter results for the financial year ended 31 December 2021 (“Q4FYE2021”).
For the quarter under review, MGB registered a revenue and profit after tax (“PAT”) of RM188.55 million and RM10.34 million respectively. In comparison with the corresponding quarter in 2020, revenue increased 3.84% from RM181.57 million while PAT was 79.20% higher from RM5.77 million.
For FYE2021, the Group’s revenue increased 5.41% year-on-year, from RM563.27 million to RM593.76 million. PAT leaped 89.43% from RM14.00 million to RM26.52 million. The positive results were mainly due to the acceleration of the on-going projects’ progress work done. Several sizeable projects such as KITA Harmoni, KITA Bayu and LBS SkyLake Residence were substantially completed in FYE2021. To add on, the Group successfully closed and finalized accounts for previous completed projects with major sub-contractors which contributed to its financial results.
The construction and trading segment, which is MGB’s main earnings contributor, recorded revenue of RM576.95 million in FYE2021 compared to RM479.14 million in the FYE2020. While MGB’s performance was hindered by the various movement control orders imposed by the government throughout the year, MGB’s overall increase in revenue was attributed to its construction activities being able to operate in full capacity in Q4FYE2021. The strong numbers were largely due to better gross profit margin in FYE2021 from completed and on-going projects via strict cost control measures, negotiations and the reliance on MGB’s own in-house industrialised building solutions which reduced reliance on labour.
MGB Group Executive Vice Chairman Tan Sri Dato’ Sri Lim Hock San commented, “Although 2021 turned out to be an extension of the previous year with the ongoing pandemic, MGB was better prepared when the movement control orders were announced. Thus, I am indeed pleased at the performance MGB put in for 2021.
According to the Economic Outlook 2022 published by Ministry of Finance, Malaysia’s economy is anticipated to grow between 5.50% to 6.50%. While it appears we are on the road to recovery, with Q4 results reversing the downward trend from Q1 to Q3, we will not rest on our laurels. This year will indeed be an exciting one for MGB. Through MGB’s Value Added Driven Technology (VadTech) approach, we aim to deliver cost-effective and innovative solutions for our clients. We have been able to assist our clients in the construction segment with our cost-friendly and efficient IBS system. With that, we aim to further provide turnkey solutions and serve as an engineering, procurement and construction partner from beginning till the end. The pandemic has taught us to be adaptable. We will continue to monitor the market situation and tweak our approach as we go along.
With 22 on-going projects from both our construction and property development segment, we are in steady ground as MGB’s top line seeks to generate revenue of approximately RM4.15 billion in the coming years. This is on the back of our construction order book which stands at a healthy RM1.90 billion and an estimated Gross Development Value of RM2.15 billion under our property development segment. Aside from the rapid on-going construction of Residensi Bintang Bukit Jalil, Mercu Jalil, Ritma Perdana and Melodi Perdana at LBS Alam Perdana township, we look forward to deliver the 7,210 Rumah Selangorku Idaman MBI homes to the Selangor public. The first Rumah Selangorku MBI launch, Rumah Selangorku Idaman BSP received overwhelming response where all 1,312 units were fully booked within 3 months of its launch. This is a positive indication of the public’s trusts in our ability to deliver sustainable housing projects. We will not let them down. To add on, MGB is confident that it will be able to deliver sustainable growth in the coming years to its shareholders.”
-End-
For media inquiries, please contact:
1. Corporate Communication, Media & Digital, LBS at media@digitalmedia
2. Ng Shu Wain at [email protected].