KUALA LUMPUR – MGB Berhad, a subsidiary of LBS Bina Group Berhad, announced its unaudited financial results for the first quarter ended March 31, 2025, recording total revenue of RM227.7 million.
This represents a 4.5 per cent increase compared to RM217.9 million reported in the same quarter last year.
Profit before tax for the first quarter stood at RM17.0 million, while profit after tax was RM12.0 million.
The growth was driven by solid performance in the property development segment, particularly from key projects such as Idaman Cahaya Phase 2 and Idaman Sari.
This segment saw a year-on-year revenue increase of 30.3 per cent to RM114.2 million.
Meanwhile, the construction and trading segment generated a total revenue of RM192.8 million, including RM79.3 million from inter-segment transactions.
As of 31 March, MGB maintained a strong financial position with cash and bank balances of RM66.9 million and a conservative net gearing ratio of 0.1 times.
This reflects disciplined financial management and a robust balance sheet.
This approach provides flexibility in managing daily cash flow and the ability to undertake strategic investments without compromising the group’s financial foundation.
MGB Berhad Group Executive Chairman, Tan Sri Dr Lim Hock San said the group is actively strengthening its strategic position in the affordable housing sector, as well as commercial and industrial developments.
“The group remains optimistic but cautious about the property development outlook, driven by sustained demand for quality and affordable housing.
“Building on this positive momentum, MGB is on the right track to achieve continuous growth by leveraging the efficiency of its concrete-based Industrialised Building System (IBS) and continually improving operational processes to optimise productivity.
“Regionally, our expansion efforts, especially developments in Saudi Arabia, demonstrate MGB’s readiness to grow operations internationally. In March, MGB successfully secured a second purchase order from Sany Alameriah valued at approximately RM88.6 million,” he said.
He added that this follow-up order raises the total contract value to RM207 million, covering the construction of 726 residential units.
“Breaking into the international market, combined with a continued focus on innovation and operational efficiency, shows the effectiveness of our strategic approach.
“This integrated effort enhances MGB’s capability to seize market opportunities, maintain reliability and excellence standards, and provides a clearer and stronger income outlook for the future,” he said.
Lim also announced that MGB proposed a final dividend of 1.54 sen per share for the financial year ended 2024, bringing the total annual dividend to 3.06 sen per share.
He described that this aligns with the company’s ongoing commitment to delivering returns to shareholders, in accordance with its dividend policy of distributing at least 30 per cent of profit after tax and minority interests.
“As of 30 April 2025, the order books for the construction and property development segments stand at RM1.2 billion and RM584.0 million respectively.
“With a strong financial base, a highly skilled team focused on innovation, and the integration of Environmental, Social, and Governance (ESG) principles into our business model, MGB is expected to drive performance in the coming quarters, ensuring sustained growth and success,” he added.
