MGB Bhd has secured a RM34.76 million contract to build residential villas in Jeddah, Saudi Arabia, further strengthening its presence in the Middle East.
In a Bursa Malaysia filing on Wednesday, the construction firm said the contract was awarded to its wholly owned subsidiary, MGB International For Industry, by Saudi real estate developer Roshn Group Company.
Under the eight-month contract, MGB will construct 75 villa units for the Marafy Al-Arous Development Project, Roshn’s first fully integrated mixed-use development. The group has previously collaborated with Roshn on projects such as the Roshn Alarous development in Jeddah, where it supplied and installed precast elements.
MGB said the latest contract is expected to boost its earnings and strengthen its order book, while supporting its strategy to expand its footprint in Saudi Arabia and the broader regional market.
According to AskEdge data, MGB is currently trading at a price-to-earnings ratio of 4.9 times, the lowest among its peers and below its historical valuation range. Its price-to-net asset value of 0.4 times is also the lowest in the peer group and near recent lows.
Shares in MGB closed one sen or 2.4% higher at 43 sen, valuing the company at RM254.4 million.
