MGB posts 22% rise in 4Q net profit on higher other income, pays 1.52 sen dividend

• According to MGB, the improvement in FY2024 was predominantly attributed to its property development segment’s fourfold leap in revenue to RM483.6 million from RM115.6 million in the preceding year.

KUALA LUMPUR (Feb 18): Construction firm MGB Bhd’s (KL:MGB) net profit rose 21.76% to RM14.44 million in the fourth quarter ended Dec 31, 2024 (4QFY2024) from RM11.86 million a year earlier, lifted by other income, despite recording lower revenue.

MGB’s other income came in at RM6.62 million in 4QFY2024, a whopping 3,557% jump from RM181,000 a year earlier.

Earnings per share stood at 2.44 sen in 4QFY2024, compared with two sen in 4QFY2023.

Quarterly revenue, however, dropped 15.88% year-on-year to RM256.84 million, from RM305.33 million, mainly due to a number of ongoing projects completed in the previous quarter.

The group declared a first interim single tier dividend of 1.52 sen, payable on March 28.

For the full year of FY2024, its net profit increased by 24.78% to RM60.11 million, from RM48.17 million in FY2023, as revenue expanded 6.19% to RM1.03 billion, from RM971.83 million previously.

According to MGB, the improvement in FY2024 was predominantly attributed to its property development segment’s fourfold leap in revenue to RM483.6 million from RM115.6 million in the preceding year.

“This substantial growth was mainly fuelled by the accelerated progress of ongoing development projects, namely Idaman Melur, Idaman Cahaya's Phase 1 and Phase 2, Idaman Sari, and Saujana Indah's Phase 1 and Phase 2,” said the group.

As a result, the segment’s profit before tax jumped to RM76.6 million in FY2024, from RM18.6 million in FY2023.

Commenting on the results, group executive chairman Tan Sri Lim Hock San noted that the resounding growth in the property development segment highlights MGB’s strategic shift towards high-demand affordable housing projects and state government initiatives, such as Rumah Selangorku 3.0.

“Our core priority remains the efficient execution of all our projects, ensuring timely delivery and optimal resource utilisation. This is in line with our mission to push the boundaries and expectations of quality, reliability and innovation. 

“Driven by our steadfast commitment to developing, refining and providing affordable housing solutions, we stay close to our vision to be a recognised design and build expert to set new standards,” said Lim.

The group had revised its dividend policy by increasing the current minimum payout of 20% to 30% of its profit after tax and minority interests, effective from FY2024.

“Moving forward, the resilience of the group underpinned by the existing construction segment’s order book of approximately RM1.10 billion, and unbilled sales of RM0.64 billion from ongoing property development projects, would contribute positively to next year's earnings,” the group said on its prospects.

The group is also targeting to secure new government projects, it added. 

Shares in MGB closed half a sen or 0.71% lower at 69.5 sen on Tuesday, giving the group a market capitalisation of RM411 million.

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