MGB Bhd receives RM189.35 million contract to build industrial units
SHAH ALAM - MGB Bhd. a construction and property development solutions provider and subsidiary of LBS Bina Group Bhd announces today that its wholly-owned subsidiary, MGB Construction and Engineering Sdn. Bhd has received a letter of award valued at RM189.35 million (Contract) from Anuar Aziz Architect on behalf of Kemudi Ehsan Sdn Bhd.
It is believed that the contract is for a development project on Lot 4295, Mukim Ijok, Daerah Kuala Selangor, Selangor Darul Ehsan.
The project encompasses five phases of industrial units and infrastructure within the LBS Alam Perdana township.
This includes 112 low-cost single-story industrial terraces, 96 two-story terraced factories, 116 three-story semi-detached factories, and infrastructure featuring 13 electrical substations, a main switch station, and a retention pond.
Leveraging over 15 years of construction experience, MGB will commence the project on May 27, 2024 with an expected duration of eighteen months.
This contract increases MGB's current construction order book to RM1.38 billion, alongside unbilled property development sales totaling RM0.75 billion as of April 30, 2024.
Following a strong Q1 2024 performance reported on May 16 with favorable evaluations from RHB Research and Public Invest Research maintaining their 'Buy' and 'Outperform' calls respectively, MGB aims to continue its growth trajectory, building on its record results from 2023.
MGB Group Executive Chairman, Tan Sri Ir. (Dr) Lim Hock San said this contract ensures steady earnings visibility for the coming years.
"We are pleased to enhance our portfolio with industrial units in the Alam Perdana township, showcasing our capability in non-residential projects. Looking ahead, we are exploring diverse opportunities both domestically and internationally.
"Additionally, MGB aims to expand its expertise in developing residential, commercial, and industrial properties by engaging in select tenders for mixed developments and securing projects that leverage our core strengths, such as our Industrialized Building System (IBS) precast concrete panels.
"While we remain positive about our prospects, we are cautiously optimistic about delivering the desired results for our stakeholders throughout the remainder of 2024," he said.
