Supported by property development segment’s quantum leap in revenue
SELANGOR, 19 August 2024 – MGB Berhad (“MGB” or the “Group”), a construction and property development solutions provider and subsidiary of LBS Bina Group Berhad, today announced its second quarter results for the financial year ending 31 December 2024 (“Q2FYE2024”).
During the quarter under review, Idaman Melur and Idaman Cahaya Phase 1 & Phase 2 recorded significantly higher development progress which resulted in a surge in the property development segment’s revenue. The revenue leapt by eleven-fold year-on-year, from Q2FYE2023’s RM13.3 million to RM149.5 million. As a result, MGB’s overall revenue increased by 15.2% year-on-year, to RM268.0 million.
In tandem with the revenue growth, profit before tax (“PBT”) surged to RM22.0 million, marking a 30.6% rise from RM16.8 million in the same period last year. The profit after tax (“PAT”) in turn was RM15.8 million, reflecting a solid 27.1% increase from RM12.4 million. The Group’s effort to continuously enhance and maintain operational efficiency, as well as implementing cost efficiency initiatives, are now bearing success, and contributed to these positive financial results, which are reflected in improved margins.
For the cumulative six-month financial period ended 30 June 2024, MGB delivered an 18.4% increase, year-on-year, in revenue from RM410.4 million to RM 485.9 million. This was attributed to the significantly higher contribution from the property development segment from RM22.5 million to RM 237.1 million, due to the higher development progress for Idaman Melur, Idaman Cahaya Phase 1 & Phase 2, Idaman Sari and Saujana Indah Phase 1 & Phase 2. Consequently, PBT and PAT rose by 29.4% and 25.3% respectively to RM42.6 million and RM30.9 million.
Addressing the financial performance, MGB Group Executive Chairman Tan Sri Ir. (Dr.) Lim Hock San said, “Our second quarter financial performance demonstrates our ability to deliver consistent results. The strong growth momentum from our property development segment will continue with our newly launched Idaman Perdana under Rumah Idaman project. On the construction segment, we are pleased to have successfully completed 3 projects to-date, namely Alam Ritma Perdana, Cybersouth @ KITA Mekar and Idaman BSP, with a combined GDV (gross development value) of RM 719.0 million.” MGB will maintain its focus on completing its current projects, backed by a sizable order book of approximately RM 1.27 billion as of 31 July 2024, with property development unbilled sales of approximately RM 700 million. Additionally, the Group has secured new contracts totalling RM 396.4 million year-to-date, which are expected to contribute positively to earnings over the next several years.”
He further added, “Our commitment to operational excellence and disciplined cost control has driven substantial improvements to our bottom line, culminating in our recent recognition at The Edge Centurion Club Awards 2024. As we progress through the year, we remain committed to expanding our affordable house developments by leveraging on our Industrialized Building System (IBS) precast concrete, as well as new technologies and innovative approaches to the construction process. We are cautiously optimistic in our ability to maintain our growth momentum and achieve new milestones in the coming quarters. The high encouraging sales of Rumah Idaman affirms the need for more affordable housing projects, which remains a key target segment for us. On the international front, we remain focused on carrying out our supply and installation of precast concrete products in Jeddah, the Kingdom of Saudi Arabia, and we look forward to building our track record within the region.
