KUALA LUMPUR: MGB Bhd's RM189.35 million contract is projected to contribute an average of 8.3 per cent annually to its earnings over the eighteen-month contract period, according to Public Investment Bank (PublicInvest).
The construction and property development subsidiary of LBS Bina Group Bhd, announced on Monday that it has accepted a letter of award from Kemudi Ehsan Sdn Bhd.
PublicInvest said that MGB's construction order book, amounting to RM1.38 billion, ensures earnings visibility for the next two years.
"The outlook for MGB is strong, supported by its substantial construction order book valued at around RM1.38 billion and unbilled sales of RM0.75 billion from ongoing property development projects.
"While the group continues to prioritise the construction of affordable homes, it will also engage in select mixed-use developments to gain experience and bolster its track record in non-residential projects," it said.
PublicInvest stated that it is maintaining its earnings forecast since this contract is included in its job replenishment target of RM600 million for the financial year 2024 (FY24).
The bank retains its 'Outperform' call on MGB with a target price of RM1.16.