KUALA LUMPUR: Property developer MGB Bhd saw its net profit surge three-fold, reaching RM51.1 million for the fourth quarter (Q4) ended December 31, 2023 (FY23) on the back of profit before tax (PBT) of RM69.2 million.
Earnings per share improved from 2.55 sen to 8.25 sen for FY23, resulting in a price-to-earnings ratio of 10.6 times, based on the closing share price of RM0.87.
After three consecutive quarters of positive financial performance, the growth momentum culminated in Q4 FY23, with revenue soaring by 109.7 per cent to RM305.3 million year-on-year (YoY).
Higher contributions from the construction, trading, and property development segments drove this surge.
The construction and trading segment recorded a 73.5 per cent increase in revenue, reaching RM241.5 million, while the property development segment recorded a nine-fold improvement, amounting to RM63.9 million.
Consequently, the PBT and net profit surged 170.1 per cent and 259.9 per cent, reaching RM18.4 million and RM13.7 million, respectively.
MGB recorded revenue of RM971.8 million for the full year, marking a 58.6 per cent increase from the previous year’s RM612.8 million.
This substantial growth was primarily driven by a 45.4 per cent increase in revenue from the construction and trading segment, amounting to RM856.2 million.
The surge was propelled by Idaman BSP, KITA Sejati, Prestige, and KITA Mekar projects.
Furthermore, the property development segment’s revenue saw an impressive surge of 385.5 per cent to RM115.6 million, attributed to higher progress billings for the Idaman Melur and Idaman Cahaya Phase 1 projects, along with the delivery of vacant possession for Laman Bayu Phase 3 and Phase 4 projects.
MGB group executive chairman Tan Sri Ir (Dr) Lim Hock San said this net profit is the highest the company has recorded thus far, thanks to its operational efficiency and strategic decision-making.
“These positive results reflect the dedication and hard work of every member of the MGB family. Each individual, from our skilled workforce to our visionary leadership team, has been pivotal in driving the company’s success.
“We are excited about the opportunities and confident in capitalising on them. With a solid track record of success, a strong team, and a clear strategic vision, we can navigate any challenges arising from uncertainties and seize the vast potential that awaits us,” Lim said in a statement.
Moving into 2024, Lim said the company is cautiously optimistic about continue delivering commendable financial performance.
He said this is supported by an outstanding order book of approximately RM1.2 billion and unbilled sales of RM0.7 billion from ongoing property projects with a gross development value (GDV) of approximately RM1.2 billion across the board.
“Additionally, the two purchase orders that we received from Sany Alameriah totalling RM119.55 million for the supply and installation of 400 villas in Roshn Alarous development, north of Jeddah, is very encouraging to our performance and branding.
“This should contribute positively to our revenue for 2024, and as our first international order, we look forward to applying our expertise in construction and industrialised building system (IBS) precast technology to deliver the best product to our customers,” Lim said.
