MGB posts 4.5pct revenue growth to RM227.7mil in Q1 on strong project progress

New Straits Times

3 days ago

KUALA LUMPUR: MGB Bhd, a construction and property development solutions provider under LBS Bina Group Bhd, posted steady revenue growth for the first quarter ended March 31, 2025 (Q1FYE2025), supported by continued progress across its core development projects.
The group recorded RM227.7 million in revenue for Q1FYE2025, a 4.5 per cent increase from RM217.9 million in the same quarter last year. Pre-tax profit stood at RM17 million, with profit after tax at RM12 million.
The improved performance was mainly attributed to the property development segment, which posted a 30.3 per cent year-on-year revenue increase to RM114.2 million, driven by strong contributions from projects such as Idaman Cahaya Phase 2 and Idaman Sari.
Meanwhile, the construction and trading segment posted RM192.8 million in revenue, including RM79.3 million from internal transactions.
As of March 31, 2025, MGB maintained a healthy financial position, with RM66.9 million in cash and bank balances while maintaining a conservative 0.1 times net gearing ratio. This highlights the group's disciplined financial management and strong balance sheet, providing day-to-day operational flexibility and capacity for strategic investments without straining its financial foundations.
Commenting on the Q1FYE2025 results, MGB group executive chairman Tan Sri Dr. Lim Hock San said that MGB is strategically expanding its presence in the affordable housing, commercial and industrial development sectors as it maintains a cautious optimism on its property development outlook, driven by sustained demand for high-quality, affordable homes.
"Riding on this momentum, we are well positioned for continued growth, harnessing the efficiency of our Industrialised Building System (IBS) precast concrete and further streamlining operations for maximum productivity.
"Moreover, our regional expansion initiatives, including progress in Saudi Arabia, reflect our readiness to grow beyond domestic borders. This is evidenced by the second purchase order secured from Sany Alameriah in March this year, valued at approximately RM88.6 million.
"Building upon our initial success, this follow-on order brings the total contract value to RM207 million, encompassing the construction of 726 residential units," he said in a statement.
Lim said that MGB's successful entry and growth within international markets, coupled with the group's focus on innovation and productivity, validate the strength of its strategic approach.
"These efforts collectively enhance our ability to capture market opportunities and uphold our standards of reliability and excellence and eventually provide greater earnings visibility moving forward," he said.
MGB has proposed a final dividend of 1.54 sen per share for the fiscal year 2024, bringing the total dividend to 3.06 sen, in line with the group's policy of distributing at least 30 per cent of profit after tax and minority interest.
The group's current construction order book and unbilled property sales stand at a commendable RM1.2 billion and RM584 million, respectively, as of April 30, 2025.
This robust pipeline, supported by the group's solid financials and talented team which focused on innovation, along with the balancing and integrating of its environmental, social and governance principles into its business model, will bolster its performance in the upcoming quarters, ensuring continued growth and success.