PETALING JAYA: MGB Berhad, a construction and property development solutions provider and subsidiary of LBS Bina Group Berhad, today announced that its wholly-owned subsidiary MGB Construction & Engineering Sdn Bhd has accepted a letter of award worth RM189.35 million (contract) from Anuar Aziz Architect on behalf of Kemudi Ehsan Sdn Bhd for a development project on Lot 4295, Mukim Ijok, Daerah Kuala Selangor, Selangor Darul Ehsan.
The contract consists of five phases of industrial units and infrastructure, and forms part of the LBS Alam Perdana township, which will include 112 units low-cost single-story industrial terrace, 96 units of two-story terraced factories, 116 units of three-story semi-detached factories, and infrastructure comprising of 13 units of electrical substations, 1 main switch station and a retention pond. MGB will leverage its over 15 years of valuable construction experience to successfully complete the project, which is expected to commence today for a duration of 18 months.
This contract replenishes MGB’s existing outstanding construction order book to RM1.38 billion, with unbilled property development sales of RM 0.75 billion as at April 30, 2024. Building on its positive Q1 2024’s result announced on May 16, 2024, which were recently evaluated by RHB Research and maintained the call to “Buy” as well as Public Invest Research’s decision to maintain its call of Outperform, MGB’s aims to grow from strength to strength, following its record results in 2023.
MGB Group executive chairman, Tan Sri (Dr) Lim Hock San said, “This contract will provide us with steady earnings visibility in the coming years. In addition to our expertise in the construction of both landed and high-rise residential properties, we are delighted to develop and build industrial units in the Alam Perdana township which enhances our track record for non-residential projects. Moving forward, we continue to explore a variety of opportunities both in Malaysia and internationally.”
Additionally, he added MGB aims to broaden its experience in developing residential, commercial and industrial properties simultaneously by participating in selected tenders involving mixed developments and consistently securing projects that will utilise their key strengths, such as their Industrialised Building System (IBS) precast concrete panels.
“While our prospects are positive, we are cautiously optimistic that we will be able to deliver desired results for our stakeholders for the rest of 2024,” said Lim.
