KUALA LUMPUR: MGB Bhd, a construction and property development subsidiary of LBS Bina Group Bhd, announces that it has accepted a letter of award worth RM189.35 million from Kemudi Ehsan Sdn Bhd.
MGB's wholly-owned subsidiary MGB Construction & Engineering Sdn Bhd specifically accepted the letter of award from Anuar Aziz Architect on behalf of Kemudi Ehsan for a development project in Ijok, Kuala Selangor.
The contract consists of five phases of industrial units and infrastructure, and forms part of the LBS Alam Perdana township.
It 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 said it will leverage its over 15 years of valuable construction experience to successfully complete the project, which is expected to commence on May 27 this year for 18 months.
"This contract replenishes MGB's existing outstanding construction order book to RM1.38 billion, with unbilled property development sales of RM0.75 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," it added.
MGB group executive chairman,l Tan Sri Ir. (Dr) Lim Hock San commented: "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, MGB continues to explore a variety of opportunities both in Malaysia and internationally, Lim added.
Additionally, 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 use its key strengths, such as our Industrialided Building System 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," the company said.