Latest news with #MGBBhd
New Straits Times
4 days ago
- Business
- New Straits Times
MGB posts 4.5pct revenue growth to RM227.7mil in Q1 on strong project progress
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.
Malaysian Reserve
24-04-2025
- Business
- Malaysian Reserve
MGB finalises RM7.2m settlement for Cameron Highlands development
MGB Bhd, via its indirect wholly-owned subsidiary Sinaran Kencana Sdn Bhd (SKSB), has entered into a settlement agreement with Aset AZG Sdn Bhd (AASB) to resolve outstanding land cost payments related to a stalled joint development project in Cameron Highlands. In an announcement to Bursa Malaysia today, the company said the full and final settlement amount totals RM7.23 million, comprising a cash payment of RM5.64 million and a contra payment of RM1.59 million through agreed-upon properties. The settlement resolves the balance cost and agreed interest related to the land acquired under a joint venture agreement (JVA) signed on August 5, 2019. The property in question is a 99-year leasehold land in Tanah Rata, Cameron Highlands measuring 7,626 sq m. AASB paid RM11.45 million for the land on March 4, 2019 and was registered as the owner on May 8, 2019. Under the original JVA, both parties had agreed to a 50:50 profit-sharing model from the development. However, AASB has since opted out, citing that the profit-sharing arrangement is no longer feasible due to current market sentiment, and proposed instead to receive its entitlement upfront through the settlement. SKSB had previously made a partial payment of RM5.5 million toward the land cost. The agreed interest of RM1.28 million was mutually determined based on an annual rate of 4% over 70 months – the duration the remaining RM5.5 million was unpaid, from August 2019 to June 2025. The settlement agreement was executed on April 22 2025, and the cash portion is to be paid in two equal tranches: one on or before June 30 2025, and the second on or before July 31, 2025. The contra portion will be deemed settled upon execution of the relevant sale and purchase agreement (SPA), regardless of whether the properties are completed. SKSB has obtained Kebenaran Merancang (KM) approval from the Majlis Daerah Cameron Highlands on March 26, 2025. The approval is valid for one year, expiring on March 25, 2026. MGB stated that the total project cost is estimated at RM87 million. While the JVA remains formally in place, AASB will be deemed to have discharged its obligations as landowner partner upon full settlement. The company also clarified that the contra properties do not comprise service apartments on the Cameron Highlands development land. — TMR
