MGB bags RM207.03 mil property development project in Sepang

• MGB said the contract is for the development of two blocks of D’Island Residence service apartments, along with related facilities.

KUALA LUMPUR (March 21): Construction firm MGB Bhd has secured a contract worth RM207.03 million to undertake a two-phase property development project in Sepang, Selangor.

MGB accepted the project via its wholly owned MGB Construction & Engineering Sdn Bhd, which had accepted the letter of award from Anuar Aziz Architect on behalf of Astana Modal Sdn Bhd.

Astana Modal is an indirect subsidiary of LBS Bina Group Bhd, which is a major shareholder of MGB with a 58.65% stake, thus making the new contract a related party transaction, MGB’s bourse filing showed.

MGB said the contract is for the development of two blocks of D’Island Residence service apartments, along with related facilities.

The first phase of the project is set to be completed in 27 months, starting from June 1 this year. The second phase is scheduled to commence on Feb 2, 2025, and is expected to span 24 months.

The group’s current outstanding order book, including the latest win, stands at about RM1.27 billion.

For its fourth financial quarter ended Dec 31, 2023 (4QFY2023), MGB reported a net profit of RM12.48 million, over three times the RM3.71 million it recorded in the same quarter last year, driven by higher progressive billings and cost control. Revenue doubled to RM305.33 million, from RM145.58 million.

MGB’s shares closed two sen or 2.6% higher at 79 sen on Thursday, valuing the company at RM467.41 million.

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