Mgb Lastest QR Summary

Summary of MGB Berhad's Q2 2024 Financial Results:

1. Financial Performance

- Revenue growth: Revenue increased to RM267,995 thousand in the current quarter (ended 30-Jun-24) from RM232,595 thousand in the same quarter of the previous year. Year-to-date revenue rose to RM485,878 thousand from RM410,354 thousand.
- Profit before tax: Increased to RM21,991 thousand in the current quarter from RM16,844 thousand in the corresponding quarter of the previous year. Year-to-date profit before tax is RM42,580 thousand compared to RM32,898 thousand in the previous year.
- Profit after tax: Reached RM15,772 thousand in the current quarter versus RM12,405 thousand in the same quarter of the prior year. Year-to-date profit after tax is RM30,885 thousand compared to RM24,646 thousand.
- Earnings per share: Basic and diluted earnings per share increased from 2.03 sen to 2.57 sen in the current quarter. Year-to-date earnings per share is 4.97 sen compared to 4.06 sen in the previous year.

2. Statement of Financial Position

- Assets: Total assets stood at RM1,155,854 thousand as of 30-Jun-24 compared to RM1,123,027 thousand at the end of the previous year.
- Equity: Equity attributable to owners of the parent increased from RM552,925 thousand to RM577,610 thousand. Total equity is RM580,693 thousand compared to RM554,514 thousand in the previous year.
- Net assets per share: Increased from RM0.93 to RM0.98.

3. Statement of Changes in Equity

- Profit for the period: Contributed to an increase in retained earnings.
- Other comprehensive income: Increased by RM116 thousand.
- Dividends paid: Reduced retained earnings by RM4,822 thousand.

4. Statement of Cash Flows

- Net cash generated from operating activities: RM37,959 thousand in the current period compared to RM29,333 thousand in the previous period.
- Net cash used in investing activities: RM23,390 thousand in the current period compared to RM2,534 thousand in the previous period.
- Net cash generated from/(used in) financing activities: RM36,299 thousand in the current period compared to a net outflow of RM14,598 thousand in the previous period.
- Net increase in cash and cash equivalents: RM50,868 thousand in the current period compared to RM12,201 thousand in the previous period.

5. Segmental Information

- Construction and trading: Revenue decreased due to projects nearing completion. The decline in profit before tax is mainly due to increased administrative expenses, depreciation, and Saudi expenses. Internal revenue from precast product manufacturing is approximately RM43.28 million.
- Property development: Revenue and profit before tax increased significantly due to accelerated progress in several projects.
- Others: Pretax loss increased.

6. Other Information

- Changes in accounting policies: The adoption of amendments to MFRS had no significant impact on the financial statements. The future adoption of new standards is not expected to have a significant impact.
- Dividends paid: The first interim single-tier dividend of RM0.00815 per ordinary share was paid in the financial year 2023.
- Capital commitments: As of 30-Jun-24, the authorized and contracted purchase order for property, plant, and equipment is RM5,031,000.
- Contingent liabilities: Bank guarantees issued for property development increased from RM10,074,000 to RM13,250,000.
- Significant related party transactions: Summarized transactions with companies where certain directors have common interests.

7. Prospects

- Committed to building affordable homes through innovation and technological progress and improving construction processes. The goal is to secure new government projects.
- Received the first international order to supply and install precast concrete products for 400 villas in the prestigious Roshn Alarous project in northern Jeddah.
- The existing construction segment's order book of approximately RM1.31 billion and RM710 million in unbilled sales from ongoing property development projects provide support for the group's resilience and will have a positive impact on next year's earnings.

⚠️ Investment Conclusion

The company shows some positive signs such as revenue growth, increased earnings per share, and prospects for future projects. However, there are also concerns such as fluctuations in different business segments and net cash used in investing activities. 

Disclaimer: Only for educational purposes, not a buy/sell call. Please consult your professional financial advisor.