KUALA LUMPUR: Construction and property development solutions provider MGB Bhd's net profit rose 18.23 per cent to RM14.20 million in the first quarter (Q1) ended Dec 31, 2024 from RM12.01 million a year ago.
The company, a subsidiary of LBS Bina Group Bhd, posted a 22.57 per cent higher revenue to RM217.88 million in Q1 2024 from RM177.76 million last year.
This was driven by the property development segment's nine-fold increase in revenue to RM87.59 million.
"This revenue surge predominantly came from higher sales and progress in development of Idaman Melur, Idaman Cahaya Phase 1 and Phase 2, Idaman Sari and Saujana Indah Phase 1.
"The construction and trading segment continues to be the main revenue driver for MGB. It accounted for 59.8 per cent of Q1 2024 revenue, while the property development segment accounted for the remaining 40.2 per cent," it said in a statement.
MGB group executive chairman Tan Sri Lim Hock San said the company is delighted to announce commendable first quarter results.
With a steadfast commitment to excellence and unwavering dedication from its team, Lim said MGB managed to set a solid foundation for the year ahead.
"This remarkable performance is a testament to our strategic vision and relentless pursuit of operational efficiency and cost optimisation," he added.
According to Lim, MGB's IBS (industrialised building system) precast concrete products have reduced construction time at worksites substantially by 33 per cent and improved consistency of its construction process.
Lim said IBS has managed to bring down its overhead costs and enhance the quality of the company's precast concrete products that are being pre-fabricated in a controlled factory environment.
"To add on, with our first international order received for the supply and installation of precast concrete products for 400 villas in the prestigious Roshn Alarous project in northern Jeddah in February 2024, we are now ready to demonstrate our competency in manufacturing and deploying IBS precast concrete technology.
"We are optimistic that our tried and tested IBS precast concrete products will deliver the desired quality product that our customers expect and solidify our reputation in the region," he said.
As at April 30b2024, Lim noted that MGB's construction order book remained healthy at RM1.19 billion, while its property development unbilled sales totalled RM0.74 billion.
Looking ahead, Lim said MGB is poised for continued growth and success.
"With a robust pipeline of projects, a strong financial position, and a talented team driving innovation and excellence, I am confident we will continue to deliver exceptional value and achieve new milestones in the quarters to come, alongside our conscious efforts to balance our environmental, social and governance commitment and integrate these core principles into our business model," he added.