MGB Berhad (MGB), a subsidiary of LBS Bina Group Berhad specialising in construction and property development, has reported robust financial results for the second quarter of the financial year ending 31 December 2024 (Q2FYE2024).
The Group's property development segment experienced a significant boost during the quarter, largely due to accelerated progress in key projects such as Idaman Melur and Idaman Cahaya Phase 1 & Phase 2. This led to an eleven-fold increase in the segment's revenue, which surged from RM13.3 million in Q2FYE2023 to RM149.5 million in Q2FYE2024. Consequently, MGB's overall revenue rose by 15.2% year-on-year, reaching RM268.0 million.
This revenue growth translated into a substantial increase in profits. The Group's profit before tax (PBT) rose by 30.6% to RM22.0 million, up from RM16.8 million in the same period last year. Similarly, profit after tax ("PAT") grew by 27.1%, reaching RM15.8 million compared to RM12.4 million in Q2FYE2023. These positive financial results reflect MGB's continuous efforts to enhance operational efficiency and implement cost-saving measures, leading to improved margins.
For the first half of the year ending 30 June 2024, MGB reported an 18.4% year-on-year increase in revenue, from RM410.4 million to RM485.9 million. This growth was driven by a significant contribution from the property development segment, which saw revenue jump from RM22.5 million to RM237.1 million due to higher development progress across several key projects, including Idaman Sari and Saujana Indah Phase 1 & Phase 2.
MGB Group Executive Chairman Tan Sri Ir. (Dr.) Lim Hock San expressed confidence in the company's ongoing success. "Our second-quarter performance highlights our ability to deliver consistent results. The strong growth momentum from our property development segment will continue, particularly with the newly launched Idaman Perdana under the Rumah Idaman project," he said.
In addition to its property development achievements, MGB successfully completed three construction projects—Alam Perdana Ritma, Cybersouth @ Kita Mekar, and Idaman BSP—with a combined gross development value (GDV) of RM719.0 million. The Group's order book stands at approximately RM1.27 billion as of 31 July 2024, with unbilled property development sales of around RM700 million. MGB has also secured new contracts totalling RM396.4 million year-to-date, expected to positively impact earnings in the coming years.
MGB remains focused on operational excellence, disciplined cost control, and expanding its affordable housing developments. The Group is also making strides internationally, particularly in Jeddah, Saudi Arabia, where it is actively involved in the supply and installation of precast concrete products.
