LBS Bina Group’s subsidiary MGB Berhad which is primarily involved in construction and property development registered revenue and profit after tax of RM188.55 million and RM10.34 million for the fourth quarter of 2021. This is a markedly higher performance compared to the same period in 2020 comprising a revenue increase of 3.84% from RM181.57 million while PAT 79.20% higher from RM5.77 million.
For FYE2021, the Group’s revenue increased 5.41% year-on-year, from RM563.27 million to RM593.76 million. PAT leaped 89.43% from RM14.00 million to RM26.52 million. The positive results were mainly due to the acceleration of the ongoing projects’ progress work done. Several sizeable projects such as KITA Harmoni, KITA Bayu, and LBS SkyLake Residence were substantially completed in FYE2021. The group also successfully closed and finalized accounts for previously completed projects with major sub-contractors which contributed to its financial results.
Its main revenue generator, the construction and trading segment recorded revenue of RM576.95 million in FYE2021 compared to RM479.14 million in the FYE2020. While MGB’s performance was hindered by the various movement control orders imposed by the government throughout the year, the overall increase in revenue was attributed to its construction activities being able to operate in full capacity in Q4FYE2021. The strong numbers were largely due to better gross profit margin in FYE2021 from completed and ongoing projects via strict cost control measures, negotiations, and the reliance on its own in-house industrialised building solutions which reduced reliance on labour.
MGB Group Executive Vice Chairman Tan Sri Dato’ Sri Lim Hock San commented, “Although 2021 turned out to be an extension of the previous year with the ongoing pandemic, MGB was better prepared when the movement control orders were announced. Thus, I am indeed pleased with the performance put in for 2021.
“According to the Economic Outlook 2022 published by Ministry of Finance, Malaysia’s economy is anticipated to grow between 5.50% to 6.50%. While it appears we are on the road to recovery, with Q4 results reversing the downward trend from Q1 to Q3, we will not rest on our laurels. This year will indeed be an exciting one for MGB” added Dato Lim.
MGB has 22 ongoing projects from both its construction and property development segment and is optimistic to generating revenue of approximately RM4.15 billion in the coming years. This is on the back of its construction order book which stands at RM1.90 billion and has an estimated Gross Development Value of RM2.15 billion.
Aside from the rapid ongoing construction of Residensi Bintang Bukit Jalil, Mercu Jalil, Ritma Perdana, and Melodi Perdana at LBS Alam Perdana township, MGB looks to deliver the 7,210 Rumah Selangorku Idaman MBI homes to the Selangor public. The first Rumah Selangorku MBI launch, Rumah Selangorku Idaman BSP received an overwhelming response where all 1,312 units were fully booked within 3 months of its launch. This is a positive indication of the public’s trusts in our ability to deliver sustainable housing projects.
